Sen. Andy Manar

Filed: 3/23/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1

2    AMENDMENT NO. ______. Amend Senate Bill 1 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the
5Evidence-Based Funding for Student Success Act.
 
6    Section 5. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and

 

 

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1certified the economic development project area, each year
2after the date of the certification by the county clerk of the
3"total initial equalized assessed value" until economic
4development project costs and all municipal obligations
5financing economic development project costs have been paid,
6the ad valorem taxes, if any, arising from the levies upon the
7taxable real property in the economic development project area
8by taxing districts and tax rates determined in the manner
9provided in subsection (b) of Section 6 of this Act shall be
10divided as follows:
11    (1) That portion of the taxes levied upon each taxable lot,
12block, tract or parcel of real property which is attributable
13to the lower of the current equalized assessed value or the
14initial equalized assessed value of each such taxable lot,
15block, tract, or parcel of real property existing at the time
16tax increment allocation financing was adopted, shall be
17allocated to and when collected shall be paid by the county
18collector to the respective affected taxing districts in the
19manner required by law in the absence of the adoption of tax
20increment allocation financing.
21    (2) That portion, if any, of those taxes which is
22attributable to the increase in the current equalized assessed
23valuation of each taxable lot, block, tract, or parcel of real
24property in the economic development project area, over and
25above the initial equalized assessed value of each property
26existing at the time tax increment allocation financing was

 

 

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1adopted, shall be allocated to and when collected shall be paid
2to the municipal treasurer, who shall deposit those taxes into
3a special fund called the special tax allocation fund of the
4municipality for the purpose of paying economic development
5project costs and obligations incurred in the payment thereof.
6    The municipality, by an ordinance adopting tax increment
7allocation financing, may pledge the funds in and to be
8deposited in the special tax allocation fund for the payment of
9obligations issued under this Act and for the payment of
10economic development project costs. No part of the current
11equalized assessed valuation of each property in the economic
12development project area attributable to any increase above the
13total initial equalized assessed value, of such properties
14shall be used in calculating the general State school aid
15formula, provided for in Section 18-8 of the School Code, or
16the evidence-based funding formula, provided for in Section
1718-8.15 of the School Code, until such time as all economic
18development projects costs have been paid as provided for in
19this Section.
20    When the economic development project costs, including
21without limitation all municipal obligations financing
22economic development project costs incurred under this Act,
23have been paid, all surplus funds then remaining in the special
24tax allocation fund shall be distributed by being paid by the
25municipal treasurer to the county collector, who shall
26immediately thereafter pay those funds to the taxing districts

 

 

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1having taxable property in the economic development project
2area in the same manner and proportion as the most recent
3distribution by the county collector to those taxing districts
4of real property taxes from real property in the economic
5development project area.
6    Upon the payment of all economic development project costs,
7retirement of obligations and the distribution of any excess
8monies pursuant to this Section the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10economic development project area, terminating the economic
11development project area, and terminating the use of tax
12increment allocation financing for the economic development
13project area. Thereafter the rates of the taxing districts
14shall be extended and taxes levied, collected and distributed
15in the manner applicable in the absence of the adoption of tax
16increment allocation financing.
17    Nothing in this Section shall be construed as relieving
18property in economic development project areas from being
19assessed as provided in the Property Tax Code, or as relieving
20owners of that property from paying a uniform rate of taxes, as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 10. The State Finance Act is amended by changing
25Section 13.2 as follows:
 

 

 

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1    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
2    Sec. 13.2. Transfers among line item appropriations.
3    (a) Transfers among line item appropriations from the same
4treasury fund for the objects specified in this Section may be
5made in the manner provided in this Section when the balance
6remaining in one or more such line item appropriations is
7insufficient for the purpose for which the appropriation was
8made.
9    (a-1) No transfers may be made from one agency to another
10agency, nor may transfers be made from one institution of
11higher education to another institution of higher education
12except as provided by subsection (a-4).
13    (a-2) Except as otherwise provided in this Section,
14transfers may be made only among the objects of expenditure
15enumerated in this Section, except that no funds may be
16transferred from any appropriation for personal services, from
17any appropriation for State contributions to the State
18Employees' Retirement System, from any separate appropriation
19for employee retirement contributions paid by the employer, nor
20from any appropriation for State contribution for employee
21group insurance. During State fiscal year 2005, an agency may
22transfer amounts among its appropriations within the same
23treasury fund for personal services, employee retirement
24contributions paid by employer, and State Contributions to
25retirement systems; notwithstanding and in addition to the

 

 

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1transfers authorized in subsection (c) of this Section, the
2fiscal year 2005 transfers authorized in this sentence may be
3made in an amount not to exceed 2% of the aggregate amount
4appropriated to an agency within the same treasury fund. During
5State fiscal year 2007, the Departments of Children and Family
6Services, Corrections, Human Services, and Juvenile Justice
7may transfer amounts among their respective appropriations
8within the same treasury fund for personal services, employee
9retirement contributions paid by employer, and State
10contributions to retirement systems. During State fiscal year
112010, the Department of Transportation may transfer amounts
12among their respective appropriations within the same treasury
13fund for personal services, employee retirement contributions
14paid by employer, and State contributions to retirement
15systems. During State fiscal years 2010 and 2014 only, an
16agency may transfer amounts among its respective
17appropriations within the same treasury fund for personal
18services, employee retirement contributions paid by employer,
19and State contributions to retirement systems.
20Notwithstanding, and in addition to, the transfers authorized
21in subsection (c) of this Section, these transfers may be made
22in an amount not to exceed 2% of the aggregate amount
23appropriated to an agency within the same treasury fund.
24    (a-2.5) During State fiscal year 2015 only, the State's
25Attorneys Appellate Prosecutor may transfer amounts among its
26respective appropriations contained in operational line items

 

 

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1within the same treasury fund. Notwithstanding, and in addition
2to, the transfers authorized in subsection (c) of this Section,
3these transfers may be made in an amount not to exceed 4% of
4the aggregate amount appropriated to the State's Attorneys
5Appellate Prosecutor within the same treasury fund.
6    (a-3) Further, if an agency receives a separate
7appropriation for employee retirement contributions paid by
8the employer, any transfer by that agency into an appropriation
9for personal services must be accompanied by a corresponding
10transfer into the appropriation for employee retirement
11contributions paid by the employer, in an amount sufficient to
12meet the employer share of the employee contributions required
13to be remitted to the retirement system.
14    (a-4) Long-Term Care Rebalancing. The Governor may
15designate amounts set aside for institutional services
16appropriated from the General Revenue Fund or any other State
17fund that receives monies for long-term care services to be
18transferred to all State agencies responsible for the
19administration of community-based long-term care programs,
20including, but not limited to, community-based long-term care
21programs administered by the Department of Healthcare and
22Family Services, the Department of Human Services, and the
23Department on Aging, provided that the Director of Healthcare
24and Family Services first certifies that the amounts being
25transferred are necessary for the purpose of assisting persons
26in or at risk of being in institutional care to transition to

 

 

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1community-based settings, including the financial data needed
2to prove the need for the transfer of funds. The total amounts
3transferred shall not exceed 4% in total of the amounts
4appropriated from the General Revenue Fund or any other State
5fund that receives monies for long-term care services for each
6fiscal year. A notice of the fund transfer must be made to the
7General Assembly and posted at a minimum on the Department of
8Healthcare and Family Services website, the Governor's Office
9of Management and Budget website, and any other website the
10Governor sees fit. These postings shall serve as notice to the
11General Assembly of the amounts to be transferred. Notice shall
12be given at least 30 days prior to transfer.
13    (b) In addition to the general transfer authority provided
14under subsection (c), the following agencies have the specific
15transfer authority granted in this subsection:
16    The Department of Healthcare and Family Services is
17authorized to make transfers representing savings attributable
18to not increasing grants due to the births of additional
19children from line items for payments of cash grants to line
20items for payments for employment and social services for the
21purposes outlined in subsection (f) of Section 4-2 of the
22Illinois Public Aid Code.
23    The Department of Children and Family Services is
24authorized to make transfers not exceeding 2% of the aggregate
25amount appropriated to it within the same treasury fund for the
26following line items among these same line items: Foster Home

 

 

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1and Specialized Foster Care and Prevention, Institutions and
2Group Homes and Prevention, and Purchase of Adoption and
3Guardianship Services.
4    The Department on Aging is authorized to make transfers not
5exceeding 2% of the aggregate amount appropriated to it within
6the same treasury fund for the following Community Care Program
7line items among these same line items: purchase of services
8covered by the Community Care Program and Comprehensive Case
9Coordination.
10    The State Treasurer is authorized to make transfers among
11line item appropriations from the Capital Litigation Trust
12Fund, with respect to costs incurred in fiscal years 2002 and
132003 only, when the balance remaining in one or more such line
14item appropriations is insufficient for the purpose for which
15the appropriation was made, provided that no such transfer may
16be made unless the amount transferred is no longer required for
17the purpose for which that appropriation was made.
18    The State Board of Education is authorized to make
19transfers from line item appropriations within the same
20treasury fund for General State Aid, and General State Aid -
21Hold Harmless, Evidence-Based Funding, provided that no such
22transfer may be made unless the amount transferred is no longer
23required for the purpose for which that appropriation was made,
24to the line item appropriation for Transitional Assistance when
25the balance remaining in such line item appropriation is
26insufficient for the purpose for which the appropriation was

 

 

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1made.
2    The State Board of Education is authorized to make
3transfers between the following line item appropriations
4within the same treasury fund: Disabled Student
5Services/Materials (Section 14-13.01 of the School Code),
6Disabled Student Transportation Reimbursement (Section
714-13.01 of the School Code), Disabled Student Tuition -
8Private Tuition (Section 14-7.02 of the School Code),
9Extraordinary Special Education (Section 14-7.02b of the
10School Code), Reimbursement for Free Lunch/Breakfast Program,
11Summer School Payments (Section 18-4.3 of the School Code), and
12Transportation - Regular/Vocational Reimbursement (Section
1329-5 of the School Code). Such transfers shall be made only
14when the balance remaining in one or more such line item
15appropriations is insufficient for the purpose for which the
16appropriation was made and provided that no such transfer may
17be made unless the amount transferred is no longer required for
18the purpose for which that appropriation was made.
19    The Department of Healthcare and Family Services is
20authorized to make transfers not exceeding 4% of the aggregate
21amount appropriated to it, within the same treasury fund, among
22the various line items appropriated for Medical Assistance.
23    (c) The sum of such transfers for an agency in a fiscal
24year shall not exceed 2% of the aggregate amount appropriated
25to it within the same treasury fund for the following objects:
26Personal Services; Extra Help; Student and Inmate

 

 

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1Compensation; State Contributions to Retirement Systems; State
2Contributions to Social Security; State Contribution for
3Employee Group Insurance; Contractual Services; Travel;
4Commodities; Printing; Equipment; Electronic Data Processing;
5Operation of Automotive Equipment; Telecommunications
6Services; Travel and Allowance for Committed, Paroled and
7Discharged Prisoners; Library Books; Federal Matching Grants
8for Student Loans; Refunds; Workers' Compensation,
9Occupational Disease, and Tort Claims; and, in appropriations
10to institutions of higher education, Awards and Grants.
11Notwithstanding the above, any amounts appropriated for
12payment of workers' compensation claims to an agency to which
13the authority to evaluate, administer and pay such claims has
14been delegated by the Department of Central Management Services
15may be transferred to any other expenditure object where such
16amounts exceed the amount necessary for the payment of such
17claims.
18    (c-1) Special provisions for State fiscal year 2003.
19Notwithstanding any other provision of this Section to the
20contrary, for State fiscal year 2003 only, transfers among line
21item appropriations to an agency from the same treasury fund
22may be made provided that the sum of such transfers for an
23agency in State fiscal year 2003 shall not exceed 3% of the
24aggregate amount appropriated to that State agency for State
25fiscal year 2003 for the following objects: personal services,
26except that no transfer may be approved which reduces the

 

 

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1aggregate appropriations for personal services within an
2agency; extra help; student and inmate compensation; State
3contributions to retirement systems; State contributions to
4social security; State contributions for employee group
5insurance; contractual services; travel; commodities;
6printing; equipment; electronic data processing; operation of
7automotive equipment; telecommunications services; travel and
8allowance for committed, paroled, and discharged prisoners;
9library books; federal matching grants for student loans;
10refunds; workers' compensation, occupational disease, and tort
11claims; and, in appropriations to institutions of higher
12education, awards and grants.
13    (c-2) Special provisions for State fiscal year 2005.
14Notwithstanding subsections (a), (a-2), and (c), for State
15fiscal year 2005 only, transfers may be made among any line
16item appropriations from the same or any other treasury fund
17for any objects or purposes, without limitation, when the
18balance remaining in one or more such line item appropriations
19is insufficient for the purpose for which the appropriation was
20made, provided that the sum of those transfers by a State
21agency shall not exceed 4% of the aggregate amount appropriated
22to that State agency for fiscal year 2005.
23    (c-3) Special provisions for State fiscal year 2015.
24Notwithstanding any other provision of this Section, for State
25fiscal year 2015, transfers among line item appropriations to a
26State agency from the same State treasury fund may be made for

 

 

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1operational or lump sum expenses only, provided that the sum of
2such transfers for a State agency in State fiscal year 2015
3shall not exceed 4% of the aggregate amount appropriated to
4that State agency for operational or lump sum expenses for
5State fiscal year 2015. For the purpose of this subsection,
6"operational or lump sum expenses" includes the following
7objects: personal services; extra help; student and inmate
8compensation; State contributions to retirement systems; State
9contributions to social security; State contributions for
10employee group insurance; contractual services; travel;
11commodities; printing; equipment; electronic data processing;
12operation of automotive equipment; telecommunications
13services; travel and allowance for committed, paroled, and
14discharged prisoners; library books; federal matching grants
15for student loans; refunds; workers' compensation,
16occupational disease, and tort claims; lump sum and other
17purposes; and lump sum operations. For the purpose of this
18subsection (c-3), "State agency" does not include the Attorney
19General, the Secretary of State, the Comptroller, the
20Treasurer, or the legislative or judicial branches.
21    (d) Transfers among appropriations made to agencies of the
22Legislative and Judicial departments and to the
23constitutionally elected officers in the Executive branch
24require the approval of the officer authorized in Section 10 of
25this Act to approve and certify vouchers. Transfers among
26appropriations made to the University of Illinois, Southern

 

 

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1Illinois University, Chicago State University, Eastern
2Illinois University, Governors State University, Illinois
3State University, Northeastern Illinois University, Northern
4Illinois University, Western Illinois University, the Illinois
5Mathematics and Science Academy and the Board of Higher
6Education require the approval of the Board of Higher Education
7and the Governor. Transfers among appropriations to all other
8agencies require the approval of the Governor.
9    The officer responsible for approval shall certify that the
10transfer is necessary to carry out the programs and purposes
11for which the appropriations were made by the General Assembly
12and shall transmit to the State Comptroller a certified copy of
13the approval which shall set forth the specific amounts
14transferred so that the Comptroller may change his records
15accordingly. The Comptroller shall furnish the Governor with
16information copies of all transfers approved for agencies of
17the Legislative and Judicial departments and transfers
18approved by the constitutionally elected officials of the
19Executive branch other than the Governor, showing the amounts
20transferred and indicating the dates such changes were entered
21on the Comptroller's records.
22    (e) The State Board of Education, in consultation with the
23State Comptroller, may transfer line item appropriations for
24General State Aid or Evidence-Based Funding between the Common
25School Fund and the Education Assistance Fund. With the advice
26and consent of the Governor's Office of Management and Budget,

 

 

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1the State Board of Education, in consultation with the State
2Comptroller, may transfer line item appropriations between the
3General Revenue Fund and the Education Assistance Fund for the
4following programs:
5        (1) Disabled Student Personnel Reimbursement (Section
6    14-13.01 of the School Code);
7        (2) Disabled Student Transportation Reimbursement
8    (subsection (b) of Section 14-13.01 of the School Code);
9        (3) Disabled Student Tuition - Private Tuition
10    (Section 14-7.02 of the School Code);
11        (4) Extraordinary Special Education (Section 14-7.02b
12    of the School Code);
13        (5) Reimbursement for Free Lunch/Breakfast Programs;
14        (6) Summer School Payments (Section 18-4.3 of the
15    School Code);
16        (7) Transportation - Regular/Vocational Reimbursement
17    (Section 29-5 of the School Code);
18        (8) Regular Education Reimbursement (Section 18-3 of
19    the School Code); and
20        (9) Special Education Reimbursement (Section 14-7.03
21    of the School Code).
22(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
23eff. 3-26-15.)
 
24    Section 15. The Property Tax Code is amended by changing
25Sections 18-200 and 18-249 as follows:
 

 

 

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1    (35 ILCS 200/18-200)
2    Sec. 18-200. School Code. A school district's State aid
3shall not be reduced under the computation under subsections
45(a) through 5(h) of Part A of Section 18-8 of the School Code
5or under Section 18-8.15 of the School Code due to the
6operating tax rate falling from above the minimum requirement
7of that Section of the School Code to below the minimum
8requirement of that Section of the School Code due to the
9operation of this Law.
10(Source: P.A. 87-17; 88-455.)
 
11    (35 ILCS 200/18-249)
12    Sec. 18-249. Miscellaneous provisions.
13    (a) Certification of new property. For the 1994 levy year,
14the chief county assessment officer shall certify to the county
15clerk, after all changes by the board of review or board of
16appeals, as the case may be, the assessed value of new property
17by taxing district for the 1994 levy year under rules
18promulgated by the Department.
19    (b) School Code. A school district's State aid shall not be
20reduced under the computation under subsections 5(a) through
215(h) of Part A of Section 18-8 of the School Code or under
22Section 18-8.15 of the School Code due to the operating tax
23rate falling from above the minimum requirement of that Section
24of the School Code to below the minimum requirement of that

 

 

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1Section of the School Code due to the operation of this Law.
2    (c) Rules. The Department shall make and promulgate
3reasonable rules relating to the administration of the purposes
4and provisions of Sections 18-246 through 18-249 as may be
5necessary or appropriate.
6(Source: P.A. 89-1, eff. 2-12-95.)
 
7    Section 17. The Illinois Pension Code is amended by
8changing Section 16-158 as follows:
 
9    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
10    (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 90% funded basis
20in accordance with actuarial recommendations.
21    The Board shall determine the amount of State contributions
22required for each fiscal year on the basis of the actuarial
23tables and other assumptions adopted by the Board and the
24recommendations of the actuary, using the formula in subsection

 

 

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1(b-3).
2    (a-1) Annually, on or before November 15 until November 15,
32011, the Board shall certify to the Governor the amount of the
4required State contribution for the coming fiscal year. The
5certification under this subsection (a-1) shall include a copy
6of the actuarial recommendations upon which it is based and
7shall specifically identify the System's projected State
8normal cost for that fiscal year.
9    On or before May 1, 2004, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2005, taking
12into account the amounts appropriated to and received by the
13System under subsection (d) of Section 7.2 of the General
14Obligation Bond Act.
15    On or before July 1, 2005, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2006, taking
18into account the changes in required State contributions made
19by this amendatory Act of the 94th General Assembly.
20    On or before April 1, 2011, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2011, applying
23the changes made by Public Act 96-889 to the System's assets
24and liabilities as of June 30, 2009 as though Public Act 96-889
25was approved on that date.
26    (a-5) On or before November 1 of each year, beginning

 

 

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1November 1, 2012, the Board shall submit to the State Actuary,
2the Governor, and the General Assembly a proposed certification
3of the amount of the required State contribution to the System
4for the next fiscal year, along with all of the actuarial
5assumptions, calculations, and data upon which that proposed
6certification is based. On or before January 1 of each year,
7beginning January 1, 2013, the State Actuary shall issue a
8preliminary report concerning the proposed certification and
9identifying, if necessary, recommended changes in actuarial
10assumptions that the Board must consider before finalizing its
11certification of the required State contributions. On or before
12January 15, 2013 and each January 15 thereafter, the Board
13shall certify to the Governor and the General Assembly the
14amount of the required State contribution for the next fiscal
15year. The Board's certification must note any deviations from
16the State Actuary's recommended changes, the reason or reasons
17for not following the State Actuary's recommended changes, and
18the fiscal impact of not following the State Actuary's
19recommended changes on the required State contribution.
20    (b) Through State fiscal year 1995, the State contributions
21shall be paid to the System in accordance with Section 18-7 of
22the School Code.
23    (b-1) Beginning in State fiscal year 1996, on the 15th day
24of each month, or as soon thereafter as may be practicable, the
25Board shall submit vouchers for payment of State contributions
26to the System, in a total monthly amount of one-twelfth of the

 

 

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1required annual State contribution certified under subsection
2(a-1). From the effective date of this amendatory Act of the
393rd General Assembly through June 30, 2004, the Board shall
4not submit vouchers for the remainder of fiscal year 2004 in
5excess of the fiscal year 2004 certified contribution amount
6determined under this Section after taking into consideration
7the transfer to the System under subsection (a) of Section
86z-61 of the State Finance Act. These vouchers shall be paid by
9the State Comptroller and Treasurer by warrants drawn on the
10funds appropriated to the System for that fiscal year.
11    If in any month the amount remaining unexpended from all
12other appropriations to the System for the applicable fiscal
13year (including the appropriations to the System under Section
148.12 of the State Finance Act and Section 1 of the State
15Pension Funds Continuing Appropriation Act) is less than the
16amount lawfully vouchered under this subsection, the
17difference shall be paid from the Common School Fund under the
18continuing appropriation authority provided in Section 1.1 of
19the State Pension Funds Continuing Appropriation Act.
20    (b-2) Allocations from the Common School Fund apportioned
21to school districts not coming under this System shall not be
22diminished or affected by the provisions of this Article.
23    (b-3) For State fiscal years 2012 through 2045, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26sufficient to bring the total assets of the System up to 90% of

 

 

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1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For State fiscal years 1996 through 2005, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10so that by State fiscal year 2011, the State is contributing at
11the rate required under this Section; except that in the
12following specified State fiscal years, the State contribution
13to the System shall not be less than the following indicated
14percentages of the applicable employee payroll, even if the
15indicated percentage will produce a State contribution in
16excess of the amount otherwise required under this subsection
17and subsection (a), and notwithstanding any contrary
18certification made under subsection (a-1) before the effective
19date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
20in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
212003; and 13.56% in FY 2004.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006 is
24$534,627,700.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007 is

 

 

10000SB0001sam001- 22 -LRB100 06371 NHT 24204 a

1$738,014,500.
2    For each of State fiscal years 2008 through 2009, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5from the required State contribution for State fiscal year
62007, so that by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2010 is
10$2,089,268,000 and shall be made from the proceeds of bonds
11sold in fiscal year 2010 pursuant to Section 7.2 of the General
12Obligation Bond Act, less (i) the pro rata share of bond sale
13expenses determined by the System's share of total bond
14proceeds, (ii) any amounts received from the Common School Fund
15in fiscal year 2010, and (iii) any reduction in bond proceeds
16due to the issuance of discounted bonds, if applicable.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2011 is
19the amount recertified by the System on or before April 1, 2011
20pursuant to subsection (a-1) of this Section and shall be made
21from the proceeds of bonds sold in fiscal year 2011 pursuant to
22Section 7.2 of the General Obligation Bond Act, less (i) the
23pro rata share of bond sale expenses determined by the System's
24share of total bond proceeds, (ii) any amounts received from
25the Common School Fund in fiscal year 2011, and (iii) any
26reduction in bond proceeds due to the issuance of discounted

 

 

10000SB0001sam001- 23 -LRB100 06371 NHT 24204 a

1bonds, if applicable. This amount shall include, in addition to
2the amount certified by the System, an amount necessary to meet
3employer contributions required by the State as an employer
4under paragraph (e) of this Section, which may also be used by
5the System for contributions required by paragraph (a) of
6Section 16-127.
7    Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under subsection (a-1), shall

 

 

10000SB0001sam001- 24 -LRB100 06371 NHT 24204 a

1not exceed an amount equal to (i) the amount of the required
2State contribution that would have been calculated under this
3Section for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22    (c) Payment of the required State contributions and of all
23pensions, retirement annuities, death benefits, refunds, and
24other benefits granted under or assumed by this System, and all
25expenses in connection with the administration and operation
26thereof, are obligations of the State.

 

 

10000SB0001sam001- 25 -LRB100 06371 NHT 24204 a

1    If members are paid from special trust or federal funds
2which are administered by the employing unit, whether school
3district or other unit, the employing unit shall pay to the
4System from such funds the full accruing retirement costs based
5upon that service, which, beginning July 1, 2018 2014, shall be
6at a rate, expressed as a percentage of salary, equal to the
7total employer's minimum contribution to the System to be made
8by the State for that fiscal year, including both normal cost
9and unfunded liability components, expressed as a percentage of
10payroll, as determined by the System under subsection (b-3) of
11this Section. Employer contributions, based on salary paid to
12members from federal funds, may be forwarded by the
13distributing agency of the State of Illinois to the System
14prior to allocation, in an amount determined in accordance with
15guidelines established by such agency and the System. Any
16contribution for fiscal year 2015 collected as a result of the
17change made by this amendatory Act of the 98th General Assembly
18shall be considered a State contribution under subsection (b-3)
19of this Section.
20    (d) Effective July 1, 1986, any employer of a teacher as
21defined in paragraph (8) of Section 16-106 shall pay the
22employer's normal cost of benefits based upon the teacher's
23service, in addition to employee contributions, as determined
24by the System. Such employer contributions shall be forwarded
25monthly in accordance with guidelines established by the
26System.

 

 

10000SB0001sam001- 26 -LRB100 06371 NHT 24204 a

1    However, with respect to benefits granted under Section
216-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
3of Section 16-106, the employer's contribution shall be 12%
4(rather than 20%) of the member's highest annual salary rate
5for each year of creditable service granted, and the employer
6shall also pay the required employee contribution on behalf of
7the teacher. For the purposes of Sections 16-133.4 and
816-133.5, a teacher as defined in paragraph (8) of Section
916-106 who is serving in that capacity while on leave of
10absence from another employer under this Article shall not be
11considered an employee of the employer from which the teacher
12is on leave.
13    (e) Beginning July 1, 1998, every employer of a teacher
14shall pay to the System an employer contribution computed as
15follows:
16        (1) Beginning July 1, 1998 through June 30, 1999, the
17    employer contribution shall be equal to 0.3% of each
18    teacher's salary.
19        (2) Beginning July 1, 1999 and thereafter, the employer
20    contribution shall be equal to 0.58% of each teacher's
21    salary.
22The school district or other employing unit may pay these
23employer contributions out of any source of funding available
24for that purpose and shall forward the contributions to the
25System on the schedule established for the payment of member
26contributions.

 

 

10000SB0001sam001- 27 -LRB100 06371 NHT 24204 a

1    These employer contributions are intended to offset a
2portion of the cost to the System of the increases in
3retirement benefits resulting from this amendatory Act of 1998.
4    Each employer of teachers is entitled to a credit against
5the contributions required under this subsection (e) with
6respect to salaries paid to teachers for the period January 1,
72002 through June 30, 2003, equal to the amount paid by that
8employer under subsection (a-5) of Section 6.6 of the State
9Employees Group Insurance Act of 1971 with respect to salaries
10paid to teachers for that period.
11    The additional 1% employee contribution required under
12Section 16-152 by this amendatory Act of 1998 is the
13responsibility of the teacher and not the teacher's employer,
14unless the employer agrees, through collective bargaining or
15otherwise, to make the contribution on behalf of the teacher.
16    If an employer is required by a contract in effect on May
171, 1998 between the employer and an employee organization to
18pay, on behalf of all its full-time employees covered by this
19Article, all mandatory employee contributions required under
20this Article, then the employer shall be excused from paying
21the employer contribution required under this subsection (e)
22for the balance of the term of that contract. The employer and
23the employee organization shall jointly certify to the System
24the existence of the contractual requirement, in such form as
25the System may prescribe. This exclusion shall cease upon the
26termination, extension, or renewal of the contract at any time

 

 

10000SB0001sam001- 28 -LRB100 06371 NHT 24204 a

1after May 1, 1998.
2    (f) If the amount of a teacher's salary for any school year
3used to determine final average salary exceeds the member's
4annual full-time salary rate with the same employer for the
5previous school year by more than 6%, the teacher's employer
6shall pay to the System, in addition to all other payments
7required under this Section and in accordance with guidelines
8established by the System, the present value of the increase in
9benefits resulting from the portion of the increase in salary
10that is in excess of 6%. This present value shall be computed
11by the System on the basis of the actuarial assumptions and
12tables used in the most recent actuarial valuation of the
13System that is available at the time of the computation. If a
14teacher's salary for the 2005-2006 school year is used to
15determine final average salary under this subsection (f), then
16the changes made to this subsection (f) by Public Act 94-1057
17shall apply in calculating whether the increase in his or her
18salary is in excess of 6%. For the purposes of this Section,
19change in employment under Section 10-21.12 of the School Code
20on or after June 1, 2005 shall constitute a change in employer.
21The System may require the employer to provide any pertinent
22information or documentation. The changes made to this
23subsection (f) by this amendatory Act of the 94th General
24Assembly apply without regard to whether the teacher was in
25service on or after its effective date.
26    Whenever it determines that a payment is or may be required

 

 

10000SB0001sam001- 29 -LRB100 06371 NHT 24204 a

1under this subsection, the System shall calculate the amount of
2the payment and bill the employer for that amount. The bill
3shall specify the calculations used to determine the amount
4due. If the employer disputes the amount of the bill, it may,
5within 30 days after receipt of the bill, apply to the System
6in writing for a recalculation. The application must specify in
7detail the grounds of the dispute and, if the employer asserts
8that the calculation is subject to subsection (g) or (h) of
9this Section, must include an affidavit setting forth and
10attesting to all facts within the employer's knowledge that are
11pertinent to the applicability of that subsection. Upon
12receiving a timely application for recalculation, the System
13shall review the application and, if appropriate, recalculate
14the amount due.
15    The employer contributions required under this subsection
16(f) may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest will be
19charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    (g) This subsection (g) applies only to payments made or
25salary increases given on or after June 1, 2005 but before July
261, 2011. The changes made by Public Act 94-1057 shall not

 

 

10000SB0001sam001- 30 -LRB100 06371 NHT 24204 a

1require the System to refund any payments received before July
231, 2006 (the effective date of Public Act 94-1057).
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases paid to teachers
5under contracts or collective bargaining agreements entered
6into, amended, or renewed before June 1, 2005.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude salary increases paid to a
9teacher at a time when the teacher is 10 or more years from
10retirement eligibility under Section 16-132 or 16-133.2.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude salary increases resulting from
13overload work, including summer school, when the school
14district has certified to the System, and the System has
15approved the certification, that (i) the overload work is for
16the sole purpose of classroom instruction in excess of the
17standard number of classes for a full-time teacher in a school
18district during a school year and (ii) the salary increases are
19equal to or less than the rate of pay for classroom instruction
20computed on the teacher's current salary and work schedule.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude a salary increase resulting from
23a promotion (i) for which the employee is required to hold a
24certificate or supervisory endorsement issued by the State
25Teacher Certification Board that is a different certification
26or supervisory endorsement than is required for the teacher's

 

 

10000SB0001sam001- 31 -LRB100 06371 NHT 24204 a

1previous position and (ii) to a position that has existed and
2been filled by a member for no less than one complete academic
3year and the salary increase from the promotion is an increase
4that results in an amount no greater than the lesser of the
5average salary paid for other similar positions in the district
6requiring the same certification or the amount stipulated in
7the collective bargaining agreement for a similar position
8requiring the same certification.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude any payment to the teacher from
11the State of Illinois or the State Board of Education over
12which the employer does not have discretion, notwithstanding
13that the payment is included in the computation of final
14average salary.
15    (h) When assessing payment for any amount due under
16subsection (f), the System shall exclude any salary increase
17described in subsection (g) of this Section given on or after
18July 1, 2011 but before July 1, 2014 under a contract or
19collective bargaining agreement entered into, amended, or
20renewed on or after June 1, 2005 but before July 1, 2011.
21Notwithstanding any other provision of this Section, any
22payments made or salary increases given after June 30, 2014
23shall be used in assessing payment for any amount due under
24subsection (f) of this Section.
25    (i) The System shall prepare a report and file copies of
26the report with the Governor and the General Assembly by

 

 

10000SB0001sam001- 32 -LRB100 06371 NHT 24204 a

1January 1, 2007 that contains all of the following information:
2        (1) The number of recalculations required by the
3    changes made to this Section by Public Act 94-1057 for each
4    employer.
5        (2) The dollar amount by which each employer's
6    contribution to the System was changed due to
7    recalculations required by Public Act 94-1057.
8        (3) The total amount the System received from each
9    employer as a result of the changes made to this Section by
10    Public Act 94-4.
11        (4) The increase in the required State contribution
12    resulting from the changes made to this Section by Public
13    Act 94-1057.
14    (j) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (k) For purposes of determining the required State
26contribution to the system for a particular year, the actuarial

 

 

10000SB0001sam001- 33 -LRB100 06371 NHT 24204 a

1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
56-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
6    Section 20. The Innovation Development and Economy Act is
7amended by changing Section 33 as follows:
 
8    (50 ILCS 470/33)
9    Sec. 33. STAR Bonds School Improvement and Operations Trust
10Fund.
11    (a) The STAR Bonds School Improvement and Operations Trust
12Fund is created as a trust fund in the State treasury. Deposits
13into the Trust Fund shall be made as provided under this
14Section. Moneys in the Trust Fund shall be used by the
15Department of Revenue only for the purpose of making payments
16to school districts in educational service regions that include
17or are adjacent to the STAR bond district. Moneys in the Trust
18Fund are not subject to appropriation and shall be used solely
19as provided in this Section. All deposits into the Trust Fund
20shall be held in the Trust Fund by the State Treasurer as ex
21officio custodian separate and apart from all public moneys or
22funds of this State and shall be administered by the Department
23exclusively for the purposes set forth in this Section. All
24moneys in the Trust Fund shall be invested and reinvested by

 

 

10000SB0001sam001- 34 -LRB100 06371 NHT 24204 a

1the State Treasurer. All interest accruing from these
2investments shall be deposited in the Trust Fund.
3    (b) Upon approval of a STAR bond district, the political
4subdivision shall immediately transmit to the county clerk of
5the county in which the district is located a certified copy of
6the ordinance creating the district, a legal description of the
7district, a map of the district, identification of the year
8that the county clerk shall use for determining the total
9initial equalized assessed value of the district consistent
10with subsection (c), and a list of the parcel or tax
11identification number of each parcel of property included in
12the district.
13    (c) Upon approval of a STAR bond district, the county clerk
14immediately thereafter shall determine (i) the most recently
15ascertained equalized assessed value of each lot, block, tract,
16or parcel of real property within the STAR bond district, from
17which shall be deducted the homestead exemptions under Article
1815 of the Property Tax Code, which value shall be the initial
19equalized assessed value of each such piece of property, and
20(ii) the total equalized assessed value of all taxable real
21property within the district by adding together the most
22recently ascertained equalized assessed value of each taxable
23lot, block, tract, or parcel of real property within the
24district, from which shall be deducted the homestead exemptions
25under Article 15 of the Property Tax Code, and shall certify
26that amount as the total initial equalized assessed value of

 

 

10000SB0001sam001- 35 -LRB100 06371 NHT 24204 a

1the taxable real property within the STAR bond district.
2    (d) In reference to any STAR bond district created within
3any political subdivision, and in respect to which the county
4clerk has certified the total initial equalized assessed value
5of the property in the area, the political subdivision may
6thereafter request the clerk in writing to adjust the initial
7equalized value of all taxable real property within the STAR
8bond district by deducting therefrom the exemptions under
9Article 15 of the Property Tax Code applicable to each lot,
10block, tract, or parcel of real property within the STAR bond
11district. The county clerk shall immediately, after the written
12request to adjust the total initial equalized value is
13received, determine the total homestead exemptions in the STAR
14bond district as provided under Article 15 of the Property Tax
15Code by adding together the homestead exemptions provided by
16said Article on each lot, block, tract, or parcel of real
17property within the STAR bond district and then shall deduct
18the total of said exemptions from the total initial equalized
19assessed value. The county clerk shall then promptly certify
20that amount as the total initial equalized assessed value as
21adjusted of the taxable real property within the STAR bond
22district.
23    (e) The county clerk or other person authorized by law
24shall compute the tax rates for each taxing district with all
25or a portion of its equalized assessed value located in the
26STAR bond district. The rate per cent of tax determined shall

 

 

10000SB0001sam001- 36 -LRB100 06371 NHT 24204 a

1be extended to the current equalized assessed value of all
2property in the district in the same manner as the rate per
3cent of tax is extended to all other taxable property in the
4taxing district.
5    (f) Beginning with the assessment year in which the first
6destination user in the first STAR bond project in a STAR bond
7district makes its first retail sales and for each assessment
8year thereafter until final maturity of the last STAR bonds
9issued in the district, the county clerk or other person
10authorized by law shall determine the increase in equalized
11assessed value of all real property within the STAR bond
12district by subtracting the initial equalized assessed value of
13all property in the district certified under subsection (c)
14from the current equalized assessed value of all property in
15the district. Each year, the property taxes arising from the
16increase in equalized assessed value in the STAR bond district
17shall be determined for each taxing district and shall be
18certified to the county collector.
19    (g) Beginning with the year in which taxes are collected
20based on the assessment year in which the first destination
21user in the first STAR bond project in a STAR bond district
22makes its first retail sales and for each year thereafter until
23final maturity of the last STAR bonds issued in the district,
24the county collector shall, within 30 days after receipt of
25property taxes, transmit to the Department to be deposited into
26the STAR Bonds School Improvement and Operations Trust Fund 15%

 

 

10000SB0001sam001- 37 -LRB100 06371 NHT 24204 a

1of property taxes attributable to the increase in equalized
2assessed value within the STAR bond district from each taxing
3district as certified in subsection (f).
4    (h) The Department shall pay to the regional superintendent
5of schools whose educational service region includes Franklin
6and Williamson Counties, for each year for which money is
7remitted to the Department and paid into the STAR Bonds School
8Improvement and Operations Trust Fund, the money in the Fund as
9provided in this Section. The amount paid to each school
10district shall be allocated proportionately, based on each
11qualifying school district's fall enrollment for the
12then-current school year, such that the school district with
13the largest fall enrollment receives the largest proportionate
14share of money paid out of the Fund or by any other method or
15formula that the regional superintendent of schools deems fit,
16equitable, and in the public interest. The regional
17superintendent may allocate moneys to school districts that are
18outside of his or her educational service region or to other
19regional superintendents.
20    The Department shall determine the distributions under
21this Section using its best judgment and information. The
22Department shall be held harmless for the distributions made
23under this Section and all distributions shall be final.
24    (i) In any year that an assessment appeal is filed, the
25extension of taxes on any assessment so appealed shall not be
26delayed. In the case of an assessment that is altered, any

 

 

10000SB0001sam001- 38 -LRB100 06371 NHT 24204 a

1taxes extended upon the unauthorized assessment or part thereof
2shall be abated, or, if already paid, shall be refunded with
3interest as provided in Section 23-20 of the Property Tax Code.
4In the case of an assessment appeal, the county collector shall
5notify the Department that an assessment appeal has been filed
6and the amount of the tax that would have been deposited in the
7STAR Bonds School Improvement and Operations Trust Fund. The
8county collector shall hold that amount in a separate fund
9until the appeal process is final. After the appeal process is
10finalized, the county collector shall transmit to the
11Department the amount of tax that remains, if any, after all
12required refunds are made. The Department shall pay any amount
13deposited into the Trust Fund under this Section in the same
14proportion as determined for payments for that taxable year
15under subsection (h).
16    (j) In any year that ad valorem taxes are allocated to the
17STAR Bonds School Improvement and Operations Trust Fund, that
18allocation shall not reduce or otherwise impact the school aid
19provided to any school district under the general State school
20aid formula provided for in Section 18-8.05 of the School Code
21or the evidence-based funding formula provided for in Section
2218-8.15 of the School Code.
23(Source: P.A. 96-939, eff. 6-24-10.)
 
24    Section 25. The County Economic Development Project Area
25Property Tax Allocation Act is amended by changing Section 7 as

 

 

10000SB0001sam001- 39 -LRB100 06371 NHT 24204 a

1follows:
 
2    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
3    Sec. 7. Creation of special tax allocation fund. If a
4county has adopted property tax allocation financing by
5ordinance for an economic development project area, the
6Department has approved and certified the economic development
7project area, and the county clerk has thereafter certified the
8"total initial equalized value" of the taxable real property
9within such economic development project area in the manner
10provided in subsection (b) of Section 6 of this Act, each year
11after the date of the certification by the county clerk of the
12"initial equalized assessed value" until economic development
13project costs and all county obligations financing economic
14development project costs have been paid, the ad valorem taxes,
15if any, arising from the levies upon the taxable real property
16in the economic development project area by taxing districts
17and tax rates determined in the manner provided in subsection
18(b) of Section 6 of this Act shall be divided as follows:
19        (1) That portion of the taxes levied upon each taxable
20    lot, block, tract or parcel of real property which is
21    attributable to the lower of the current equalized assessed
22    value or the initial equalized assessed value of each such
23    taxable lot, block, tract, or parcel of real property
24    existing at the time property tax allocation financing was
25    adopted shall be allocated and when collected shall be paid

 

 

10000SB0001sam001- 40 -LRB100 06371 NHT 24204 a

1    by the county collector to the respective affected taxing
2    districts in the manner required by the law in the absence
3    of the adoption of property tax allocation financing.
4        (2) That portion, if any, of those taxes which is
5    attributable to the increase in the current equalized
6    assessed valuation of each taxable lot, block, tract, or
7    parcel of real property in the economic development project
8    are, over and above the initial equalized assessed value of
9    each property existing at the time property tax allocation
10    financing was adopted shall be allocated to and when
11    collected shall be paid to the county treasurer, who shall
12    deposit those taxes into a special fund called the special
13    tax allocation fund of the county for the purpose of paying
14    economic development project costs and obligations
15    incurred in the payment thereof.
16    The county, by an ordinance adopting property tax
17allocation financing, may pledge the funds in and to be
18deposited in the special tax allocation fund for the payment of
19obligations issued under this Act and for the payment of
20economic development project costs. No part of the current
21equalized assessed valuation of each property in the economic
22development project area attributable to any increase above the
23total initial equalized assessed value of such properties shall
24be used in calculating the general State school aid formula,
25provided for in Section 18-8 of the School Code, or the
26evidence-based funding formula, provided for in Section

 

 

10000SB0001sam001- 41 -LRB100 06371 NHT 24204 a

118-8.15 of the School Code, until such time as all economic
2development projects costs have been paid as provided for in
3this Section.
4    Whenever a county issues bonds for the purpose of financing
5economic development project costs, the county may provide by
6ordinance for the appointment of a trustee, which may be any
7trust company within the State, and for the establishment of
8the funds or accounts to be maintained by such trustee as the
9county shall deem necessary to provide for the security and
10payment of the bonds. If the county provides for the
11appointment of a trustee, the trustee shall be considered the
12assignee of any payments assigned by the county pursuant to the
13ordinance and this Section. Any amounts paid to the trustee as
14assignee shall be deposited in the funds or accounts
15established pursuant to the trust agreement, and shall be held
16by the trustee in trust for the benefit of the holders of the
17bonds, and the holders shall have a lien on and a security
18interest in those bonds or accounts so long as the bonds remain
19outstanding and unpaid. Upon retirement of the bonds, the
20trustee shall pay over any excess amounts held to the county
21for deposit in the special tax allocation fund.
22    When the economic development project costs, including
23without limitation all county obligations financing economic
24development project costs incurred under this Act, have been
25paid, all surplus funds then remaining in the special tax
26allocation funds shall be distributed by being paid by the

 

 

10000SB0001sam001- 42 -LRB100 06371 NHT 24204 a

1county treasurer to the county collector, who shall immediately
2thereafter pay those funds to the taxing districts having
3taxable property in the economic development project area in
4the same manner and proportion as the most recent distribution
5by the county collector to those taxing districts of real
6property taxes from real property in the economic development
7project area.
8    Upon the payment of all economic development project costs,
9retirement of obligations and the distribution of any excess
10monies pursuant to this Section and not later than 23 years
11from the date of adoption of the ordinance adopting property
12tax allocation financing, the county shall adopt an ordinance
13dissolving the special tax allocation fund for the economic
14development project area and terminating the designation of the
15economic development project area as an economic development
16project area; however, in relation to one or more contiguous
17parcels not exceeding a total area of 120 acres within which an
18electric generating facility is intended to be constructed, and
19with respect to which the owner of that proposed electric
20generating facility has entered into a redevelopment agreement
21with Grundy County on or before July 25, 2017, the ordinance of
22the county required in this paragraph shall not dissolve the
23special tax allocation fund for the existing economic
24development project area and shall only terminate the
25designation of the economic development project area as to
26those portions of the economic development project area

 

 

10000SB0001sam001- 43 -LRB100 06371 NHT 24204 a

1excluding the area covered by the redevelopment agreement
2between the owner of the proposed electric generating facility
3and Grundy County; the county shall adopt an ordinance
4dissolving the special tax allocation fund for the economic
5development project area and terminating the designation of the
6economic development project area as an economic development
7project area with regard to the electric generating facility
8property not later than 35 years from the date of adoption of
9the ordinance adopting property tax allocation financing.
10Thereafter the rates of the taxing districts shall be extended
11and taxes levied, collected and distributed in the manner
12applicable in the absence of the adoption of property tax
13allocation financing.
14    Nothing in this Section shall be construed as relieving
15property in economic development project areas from being
16assessed as provided in the Property Tax Code or as relieving
17owners of that property from paying a uniform rate of taxes, as
18required by Section 4 of Article IX of the Illinois
19Constitution of 1970.
20(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
21    Section 30. The County Economic Development Project Area
22Tax Increment Allocation Act of 1991 is amended by changing
23Section 50 as follows:
 
24    (55 ILCS 90/50)  (from Ch. 34, par. 8050)

 

 

10000SB0001sam001- 44 -LRB100 06371 NHT 24204 a

1    Sec. 50. Special tax allocation fund.
2    (a) If a county clerk has certified the "total initial
3equalized assessed value" of the taxable real property within
4an economic development project area in the manner provided in
5Section 45, each year after the date of the certification by
6the county clerk of the "total initial equalized assessed
7value", until economic development project costs and all county
8obligations financing economic development project costs have
9been paid, the ad valorem taxes, if any, arising from the
10levies upon the taxable real property in the economic
11development project area by taxing districts and tax rates
12determined in the manner provided in subsection (b) of Section
1345 shall be divided as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract, or parcel of real property that is
16    attributable to the lower of the current equalized assessed
17    value or the initial equalized assessed value of each
18    taxable lot, block, tract, or parcel of real property
19    existing at the time tax increment financing was adopted
20    shall be allocated to (and when collected shall be paid by
21    the county collector to) the respective affected taxing
22    districts in the manner required by law in the absence of
23    the adoption of tax increment allocation financing.
24        (2) That portion, if any, of the taxes that is
25    attributable to the increase in the current equalized
26    assessed valuation of each taxable lot, block, tract, or

 

 

10000SB0001sam001- 45 -LRB100 06371 NHT 24204 a

1    parcel of real property in the economic development project
2    area, over and above the initial equalized assessed value
3    of each property existing at the time tax increment
4    financing was adopted, shall be allocated to (and when
5    collected shall be paid to) the county treasurer, who shall
6    deposit the taxes into a special fund (called the special
7    tax allocation fund of the county) for the purpose of
8    paying economic development project costs and obligations
9    incurred in the payment of those costs.
10    (b) The county, by an ordinance adopting tax increment
11allocation financing, may pledge the monies in and to be
12deposited into the special tax allocation fund for the payment
13of obligations issued under this Act and for the payment of
14economic development project costs. No part of the current
15equalized assessed valuation of each property in the economic
16development project area attributable to any increase above the
17total initial equalized assessed value of those properties
18shall be used in calculating the general State school aid
19formula under Section 18-8 of the School Code or the
20evidence-based funding formula under Section 18-8.15 of the
21School Code until all economic development projects costs have
22been paid as provided for in this Section.
23    (c) When the economic development projects costs,
24including without limitation all county obligations financing
25economic development project costs incurred under this Act,
26have been paid, all surplus monies then remaining in the

 

 

10000SB0001sam001- 46 -LRB100 06371 NHT 24204 a

1special tax allocation fund shall be distributed by being paid
2by the county treasurer to the county collector, who shall
3immediately pay the monies to the taxing districts having
4taxable property in the economic development project area in
5the same manner and proportion as the most recent distribution
6by the county collector to those taxing districts of real
7property taxes from real property in the economic development
8project area.
9    (d) Upon the payment of all economic development project
10costs, retirement of obligations, and distribution of any
11excess monies under this Section, the county shall adopt an
12ordinance dissolving the special tax allocation fund for the
13economic development project area and terminating the
14designation of the economic development project area as an
15economic development project area. Thereafter, the rates of the
16taxing districts shall be extended and taxes shall be levied,
17collected, and distributed in the manner applicable in the
18absence of the adoption of tax increment allocation financing.
19    (e) Nothing in this Section shall be construed as relieving
20property in the economic development project areas from being
21assessed as provided in the Property Tax Code or as relieving
22owners of that property from paying a uniform rate of taxes as
23required by Section 4 of Article IX of the Illinois
24Constitution.
25(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

10000SB0001sam001- 47 -LRB100 06371 NHT 24204 a

1    Section 35. The Illinois Municipal Code is amended by
2changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
3follows:
 
4    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
5    Sec. 11-74.4-3. Definitions. The following terms, wherever
6used or referred to in this Division 74.4 shall have the
7following respective meanings, unless in any case a different
8meaning clearly appears from the context.
9    (a) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to November 1, 1999 (the effective date of Public Act
1291-478), "blighted area" shall have the meaning set forth in
13this Section prior to that date.
14    On and after November 1, 1999, "blighted area" means any
15improved or vacant area within the boundaries of a
16redevelopment project area located within the territorial
17limits of the municipality where:
18        (1) If improved, industrial, commercial, and
19    residential buildings or improvements are detrimental to
20    the public safety, health, or welfare because of a
21    combination of 5 or more of the following factors, each of
22    which is (i) present, with that presence documented, to a
23    meaningful extent so that a municipality may reasonably
24    find that the factor is clearly present within the intent
25    of the Act and (ii) reasonably distributed throughout the

 

 

10000SB0001sam001- 48 -LRB100 06371 NHT 24204 a

1    improved part of the redevelopment project area:
2            (A) Dilapidation. An advanced state of disrepair
3        or neglect of necessary repairs to the primary
4        structural components of buildings or improvements in
5        such a combination that a documented building
6        condition analysis determines that major repair is
7        required or the defects are so serious and so extensive
8        that the buildings must be removed.
9            (B) Obsolescence. The condition or process of
10        falling into disuse. Structures have become ill-suited
11        for the original use.
12            (C) Deterioration. With respect to buildings,
13        defects including, but not limited to, major defects in
14        the secondary building components such as doors,
15        windows, porches, gutters and downspouts, and fascia.
16        With respect to surface improvements, that the
17        condition of roadways, alleys, curbs, gutters,
18        sidewalks, off-street parking, and surface storage
19        areas evidence deterioration, including, but not
20        limited to, surface cracking, crumbling, potholes,
21        depressions, loose paving material, and weeds
22        protruding through paved surfaces.
23            (D) Presence of structures below minimum code
24        standards. All structures that do not meet the
25        standards of zoning, subdivision, building, fire, and
26        other governmental codes applicable to property, but

 

 

10000SB0001sam001- 49 -LRB100 06371 NHT 24204 a

1        not including housing and property maintenance codes.
2            (E) Illegal use of individual structures. The use
3        of structures in violation of applicable federal,
4        State, or local laws, exclusive of those applicable to
5        the presence of structures below minimum code
6        standards.
7            (F) Excessive vacancies. The presence of buildings
8        that are unoccupied or under-utilized and that
9        represent an adverse influence on the area because of
10        the frequency, extent, or duration of the vacancies.
11            (G) Lack of ventilation, light, or sanitary
12        facilities. The absence of adequate ventilation for
13        light or air circulation in spaces or rooms without
14        windows, or that require the removal of dust, odor,
15        gas, smoke, or other noxious airborne materials.
16        Inadequate natural light and ventilation means the
17        absence of skylights or windows for interior spaces or
18        rooms and improper window sizes and amounts by room
19        area to window area ratios. Inadequate sanitary
20        facilities refers to the absence or inadequacy of
21        garbage storage and enclosure, bathroom facilities,
22        hot water and kitchens, and structural inadequacies
23        preventing ingress and egress to and from all rooms and
24        units within a building.
25            (H) Inadequate utilities. Underground and overhead
26        utilities such as storm sewers and storm drainage,

 

 

10000SB0001sam001- 50 -LRB100 06371 NHT 24204 a

1        sanitary sewers, water lines, and gas, telephone, and
2        electrical services that are shown to be inadequate.
3        Inadequate utilities are those that are: (i) of
4        insufficient capacity to serve the uses in the
5        redevelopment project area, (ii) deteriorated,
6        antiquated, obsolete, or in disrepair, or (iii)
7        lacking within the redevelopment project area.
8            (I) Excessive land coverage and overcrowding of
9        structures and community facilities. The
10        over-intensive use of property and the crowding of
11        buildings and accessory facilities onto a site.
12        Examples of problem conditions warranting the
13        designation of an area as one exhibiting excessive land
14        coverage are: (i) the presence of buildings either
15        improperly situated on parcels or located on parcels of
16        inadequate size and shape in relation to present-day
17        standards of development for health and safety and (ii)
18        the presence of multiple buildings on a single parcel.
19        For there to be a finding of excessive land coverage,
20        these parcels must exhibit one or more of the following
21        conditions: insufficient provision for light and air
22        within or around buildings, increased threat of spread
23        of fire due to the close proximity of buildings, lack
24        of adequate or proper access to a public right-of-way,
25        lack of reasonably required off-street parking, or
26        inadequate provision for loading and service.

 

 

10000SB0001sam001- 51 -LRB100 06371 NHT 24204 a

1            (J) Deleterious land use or layout. The existence
2        of incompatible land-use relationships, buildings
3        occupied by inappropriate mixed-uses, or uses
4        considered to be noxious, offensive, or unsuitable for
5        the surrounding area.
6            (K) Environmental clean-up. The proposed
7        redevelopment project area has incurred Illinois
8        Environmental Protection Agency or United States
9        Environmental Protection Agency remediation costs for,
10        or a study conducted by an independent consultant
11        recognized as having expertise in environmental
12        remediation has determined a need for, the clean-up of
13        hazardous waste, hazardous substances, or underground
14        storage tanks required by State or federal law,
15        provided that the remediation costs constitute a
16        material impediment to the development or
17        redevelopment of the redevelopment project area.
18            (L) Lack of community planning. The proposed
19        redevelopment project area was developed prior to or
20        without the benefit or guidance of a community plan.
21        This means that the development occurred prior to the
22        adoption by the municipality of a comprehensive or
23        other community plan or that the plan was not followed
24        at the time of the area's development. This factor must
25        be documented by evidence of adverse or incompatible
26        land-use relationships, inadequate street layout,

 

 

10000SB0001sam001- 52 -LRB100 06371 NHT 24204 a

1        improper subdivision, parcels of inadequate shape and
2        size to meet contemporary development standards, or
3        other evidence demonstrating an absence of effective
4        community planning.
5            (M) The total equalized assessed value of the
6        proposed redevelopment project area has declined for 3
7        of the last 5 calendar years prior to the year in which
8        the redevelopment project area is designated or is
9        increasing at an annual rate that is less than the
10        balance of the municipality for 3 of the last 5
11        calendar years for which information is available or is
12        increasing at an annual rate that is less than the
13        Consumer Price Index for All Urban Consumers published
14        by the United States Department of Labor or successor
15        agency for 3 of the last 5 calendar years prior to the
16        year in which the redevelopment project area is
17        designated.
18        (2) If vacant, the sound growth of the redevelopment
19    project area is impaired by a combination of 2 or more of
20    the following factors, each of which is (i) present, with
21    that presence documented, to a meaningful extent so that a
22    municipality may reasonably find that the factor is clearly
23    present within the intent of the Act and (ii) reasonably
24    distributed throughout the vacant part of the
25    redevelopment project area to which it pertains:
26            (A) Obsolete platting of vacant land that results

 

 

10000SB0001sam001- 53 -LRB100 06371 NHT 24204 a

1        in parcels of limited or narrow size or configurations
2        of parcels of irregular size or shape that would be
3        difficult to develop on a planned basis and in a manner
4        compatible with contemporary standards and
5        requirements, or platting that failed to create
6        rights-of-ways for streets or alleys or that created
7        inadequate right-of-way widths for streets, alleys, or
8        other public rights-of-way or that omitted easements
9        for public utilities.
10            (B) Diversity of ownership of parcels of vacant
11        land sufficient in number to retard or impede the
12        ability to assemble the land for development.
13            (C) Tax and special assessment delinquencies exist
14        or the property has been the subject of tax sales under
15        the Property Tax Code within the last 5 years.
16            (D) Deterioration of structures or site
17        improvements in neighboring areas adjacent to the
18        vacant land.
19            (E) The area has incurred Illinois Environmental
20        Protection Agency or United States Environmental
21        Protection Agency remediation costs for, or a study
22        conducted by an independent consultant recognized as
23        having expertise in environmental remediation has
24        determined a need for, the clean-up of hazardous waste,
25        hazardous substances, or underground storage tanks
26        required by State or federal law, provided that the

 

 

10000SB0001sam001- 54 -LRB100 06371 NHT 24204 a

1        remediation costs constitute a material impediment to
2        the development or redevelopment of the redevelopment
3        project area.
4            (F) The total equalized assessed value of the
5        proposed redevelopment project area has declined for 3
6        of the last 5 calendar years prior to the year in which
7        the redevelopment project area is designated or is
8        increasing at an annual rate that is less than the
9        balance of the municipality for 3 of the last 5
10        calendar years for which information is available or is
11        increasing at an annual rate that is less than the
12        Consumer Price Index for All Urban Consumers published
13        by the United States Department of Labor or successor
14        agency for 3 of the last 5 calendar years prior to the
15        year in which the redevelopment project area is
16        designated.
17        (3) If vacant, the sound growth of the redevelopment
18    project area is impaired by one of the following factors
19    that (i) is present, with that presence documented, to a
20    meaningful extent so that a municipality may reasonably
21    find that the factor is clearly present within the intent
22    of the Act and (ii) is reasonably distributed throughout
23    the vacant part of the redevelopment project area to which
24    it pertains:
25            (A) The area consists of one or more unused
26        quarries, mines, or strip mine ponds.

 

 

10000SB0001sam001- 55 -LRB100 06371 NHT 24204 a

1            (B) The area consists of unused rail yards, rail
2        tracks, or railroad rights-of-way.
3            (C) The area, prior to its designation, is subject
4        to (i) chronic flooding that adversely impacts on real
5        property in the area as certified by a registered
6        professional engineer or appropriate regulatory agency
7        or (ii) surface water that discharges from all or a
8        part of the area and contributes to flooding within the
9        same watershed, but only if the redevelopment project
10        provides for facilities or improvements to contribute
11        to the alleviation of all or part of the flooding.
12            (D) The area consists of an unused or illegal
13        disposal site containing earth, stone, building
14        debris, or similar materials that were removed from
15        construction, demolition, excavation, or dredge sites.
16            (E) Prior to November 1, 1999, the area is not less
17        than 50 nor more than 100 acres and 75% of which is
18        vacant (notwithstanding that the area has been used for
19        commercial agricultural purposes within 5 years prior
20        to the designation of the redevelopment project area),
21        and the area meets at least one of the factors itemized
22        in paragraph (1) of this subsection, the area has been
23        designated as a town or village center by ordinance or
24        comprehensive plan adopted prior to January 1, 1982,
25        and the area has not been developed for that designated
26        purpose.

 

 

10000SB0001sam001- 56 -LRB100 06371 NHT 24204 a

1            (F) The area qualified as a blighted improved area
2        immediately prior to becoming vacant, unless there has
3        been substantial private investment in the immediately
4        surrounding area.
5    (b) For any redevelopment project area that has been
6designated pursuant to this Section by an ordinance adopted
7prior to November 1, 1999 (the effective date of Public Act
891-478), "conservation area" shall have the meaning set forth
9in this Section prior to that date.
10    On and after November 1, 1999, "conservation area" means
11any improved area within the boundaries of a redevelopment
12project area located within the territorial limits of the
13municipality in which 50% or more of the structures in the area
14have an age of 35 years or more. Such an area is not yet a
15blighted area but because of a combination of 3 or more of the
16following factors is detrimental to the public safety, health,
17morals or welfare and such an area may become a blighted area:
18        (1) Dilapidation. An advanced state of disrepair or
19    neglect of necessary repairs to the primary structural
20    components of buildings or improvements in such a
21    combination that a documented building condition analysis
22    determines that major repair is required or the defects are
23    so serious and so extensive that the buildings must be
24    removed.
25        (2) Obsolescence. The condition or process of falling
26    into disuse. Structures have become ill-suited for the

 

 

10000SB0001sam001- 57 -LRB100 06371 NHT 24204 a

1    original use.
2        (3) Deterioration. With respect to buildings, defects
3    including, but not limited to, major defects in the
4    secondary building components such as doors, windows,
5    porches, gutters and downspouts, and fascia. With respect
6    to surface improvements, that the condition of roadways,
7    alleys, curbs, gutters, sidewalks, off-street parking, and
8    surface storage areas evidence deterioration, including,
9    but not limited to, surface cracking, crumbling, potholes,
10    depressions, loose paving material, and weeds protruding
11    through paved surfaces.
12        (4) Presence of structures below minimum code
13    standards. All structures that do not meet the standards of
14    zoning, subdivision, building, fire, and other
15    governmental codes applicable to property, but not
16    including housing and property maintenance codes.
17        (5) Illegal use of individual structures. The use of
18    structures in violation of applicable federal, State, or
19    local laws, exclusive of those applicable to the presence
20    of structures below minimum code standards.
21        (6) Excessive vacancies. The presence of buildings
22    that are unoccupied or under-utilized and that represent an
23    adverse influence on the area because of the frequency,
24    extent, or duration of the vacancies.
25        (7) Lack of ventilation, light, or sanitary
26    facilities. The absence of adequate ventilation for light

 

 

10000SB0001sam001- 58 -LRB100 06371 NHT 24204 a

1    or air circulation in spaces or rooms without windows, or
2    that require the removal of dust, odor, gas, smoke, or
3    other noxious airborne materials. Inadequate natural light
4    and ventilation means the absence or inadequacy of
5    skylights or windows for interior spaces or rooms and
6    improper window sizes and amounts by room area to window
7    area ratios. Inadequate sanitary facilities refers to the
8    absence or inadequacy of garbage storage and enclosure,
9    bathroom facilities, hot water and kitchens, and
10    structural inadequacies preventing ingress and egress to
11    and from all rooms and units within a building.
12        (8) Inadequate utilities. Underground and overhead
13    utilities such as storm sewers and storm drainage, sanitary
14    sewers, water lines, and gas, telephone, and electrical
15    services that are shown to be inadequate. Inadequate
16    utilities are those that are: (i) of insufficient capacity
17    to serve the uses in the redevelopment project area, (ii)
18    deteriorated, antiquated, obsolete, or in disrepair, or
19    (iii) lacking within the redevelopment project area.
20        (9) Excessive land coverage and overcrowding of
21    structures and community facilities. The over-intensive
22    use of property and the crowding of buildings and accessory
23    facilities onto a site. Examples of problem conditions
24    warranting the designation of an area as one exhibiting
25    excessive land coverage are: the presence of buildings
26    either improperly situated on parcels or located on parcels

 

 

10000SB0001sam001- 59 -LRB100 06371 NHT 24204 a

1    of inadequate size and shape in relation to present-day
2    standards of development for health and safety and the
3    presence of multiple buildings on a single parcel. For
4    there to be a finding of excessive land coverage, these
5    parcels must exhibit one or more of the following
6    conditions: insufficient provision for light and air
7    within or around buildings, increased threat of spread of
8    fire due to the close proximity of buildings, lack of
9    adequate or proper access to a public right-of-way, lack of
10    reasonably required off-street parking, or inadequate
11    provision for loading and service.
12        (10) Deleterious land use or layout. The existence of
13    incompatible land-use relationships, buildings occupied by
14    inappropriate mixed-uses, or uses considered to be
15    noxious, offensive, or unsuitable for the surrounding
16    area.
17        (11) Lack of community planning. The proposed
18    redevelopment project area was developed prior to or
19    without the benefit or guidance of a community plan. This
20    means that the development occurred prior to the adoption
21    by the municipality of a comprehensive or other community
22    plan or that the plan was not followed at the time of the
23    area's development. This factor must be documented by
24    evidence of adverse or incompatible land-use
25    relationships, inadequate street layout, improper
26    subdivision, parcels of inadequate shape and size to meet

 

 

10000SB0001sam001- 60 -LRB100 06371 NHT 24204 a

1    contemporary development standards, or other evidence
2    demonstrating an absence of effective community planning.
3        (12) The area has incurred Illinois Environmental
4    Protection Agency or United States Environmental
5    Protection Agency remediation costs for, or a study
6    conducted by an independent consultant recognized as
7    having expertise in environmental remediation has
8    determined a need for, the clean-up of hazardous waste,
9    hazardous substances, or underground storage tanks
10    required by State or federal law, provided that the
11    remediation costs constitute a material impediment to the
12    development or redevelopment of the redevelopment project
13    area.
14        (13) The total equalized assessed value of the proposed
15    redevelopment project area has declined for 3 of the last 5
16    calendar years for which information is available or is
17    increasing at an annual rate that is less than the balance
18    of the municipality for 3 of the last 5 calendar years for
19    which information is available or is increasing at an
20    annual rate that is less than the Consumer Price Index for
21    All Urban Consumers published by the United States
22    Department of Labor or successor agency for 3 of the last 5
23    calendar years for which information is available.
24    (c) "Industrial park" means an area in a blighted or
25conservation area suitable for use by any manufacturing,
26industrial, research or transportation enterprise, of

 

 

10000SB0001sam001- 61 -LRB100 06371 NHT 24204 a

1facilities to include but not be limited to factories, mills,
2processing plants, assembly plants, packing plants,
3fabricating plants, industrial distribution centers,
4warehouses, repair overhaul or service facilities, freight
5terminals, research facilities, test facilities or railroad
6facilities.
7    (d) "Industrial park conservation area" means an area
8within the boundaries of a redevelopment project area located
9within the territorial limits of a municipality that is a labor
10surplus municipality or within 1 1/2 miles of the territorial
11limits of a municipality that is a labor surplus municipality
12if the area is annexed to the municipality; which area is zoned
13as industrial no later than at the time the municipality by
14ordinance designates the redevelopment project area, and which
15area includes both vacant land suitable for use as an
16industrial park and a blighted area or conservation area
17contiguous to such vacant land.
18    (e) "Labor surplus municipality" means a municipality in
19which, at any time during the 6 months before the municipality
20by ordinance designates an industrial park conservation area,
21the unemployment rate was over 6% and was also 100% or more of
22the national average unemployment rate for that same time as
23published in the United States Department of Labor Bureau of
24Labor Statistics publication entitled "The Employment
25Situation" or its successor publication. For the purpose of
26this subsection, if unemployment rate statistics for the

 

 

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1municipality are not available, the unemployment rate in the
2municipality shall be deemed to be the same as the unemployment
3rate in the principal county in which the municipality is
4located.
5    (f) "Municipality" shall mean a city, village,
6incorporated town, or a township that is located in the
7unincorporated portion of a county with 3 million or more
8inhabitants, if the county adopted an ordinance that approved
9the township's redevelopment plan.
10    (g) "Initial Sales Tax Amounts" means the amount of taxes
11paid under the Retailers' Occupation Tax Act, Use Tax Act,
12Service Use Tax Act, the Service Occupation Tax Act, the
13Municipal Retailers' Occupation Tax Act, and the Municipal
14Service Occupation Tax Act by retailers and servicemen on
15transactions at places located in a State Sales Tax Boundary
16during the calendar year 1985.
17    (g-1) "Revised Initial Sales Tax Amounts" means the amount
18of taxes paid under the Retailers' Occupation Tax Act, Use Tax
19Act, Service Use Tax Act, the Service Occupation Tax Act, the
20Municipal Retailers' Occupation Tax Act, and the Municipal
21Service Occupation Tax Act by retailers and servicemen on
22transactions at places located within the State Sales Tax
23Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
24    (h) "Municipal Sales Tax Increment" means an amount equal
25to the increase in the aggregate amount of taxes paid to a
26municipality from the Local Government Tax Fund arising from

 

 

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1sales by retailers and servicemen within the redevelopment
2project area or State Sales Tax Boundary, as the case may be,
3for as long as the redevelopment project area or State Sales
4Tax Boundary, as the case may be, exist over and above the
5aggregate amount of taxes as certified by the Illinois
6Department of Revenue and paid under the Municipal Retailers'
7Occupation Tax Act and the Municipal Service Occupation Tax Act
8by retailers and servicemen, on transactions at places of
9business located in the redevelopment project area or State
10Sales Tax Boundary, as the case may be, during the base year
11which shall be the calendar year immediately prior to the year
12in which the municipality adopted tax increment allocation
13financing. For purposes of computing the aggregate amount of
14such taxes for base years occurring prior to 1985, the
15Department of Revenue shall determine the Initial Sales Tax
16Amounts for such taxes and deduct therefrom an amount equal to
174% of the aggregate amount of taxes per year for each year the
18base year is prior to 1985, but not to exceed a total deduction
19of 12%. The amount so determined shall be known as the
20"Adjusted Initial Sales Tax Amounts". For purposes of
21determining the Municipal Sales Tax Increment, the Department
22of Revenue shall for each period subtract from the amount paid
23to the municipality from the Local Government Tax Fund arising
24from sales by retailers and servicemen on transactions located
25in the redevelopment project area or the State Sales Tax
26Boundary, as the case may be, the certified Initial Sales Tax

 

 

10000SB0001sam001- 64 -LRB100 06371 NHT 24204 a

1Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
2Initial Sales Tax Amounts for the Municipal Retailers'
3Occupation Tax Act and the Municipal Service Occupation Tax
4Act. For the State Fiscal Year 1989, this calculation shall be
5made by utilizing the calendar year 1987 to determine the tax
6amounts received. For the State Fiscal Year 1990, this
7calculation shall be made by utilizing the period from January
81, 1988, until September 30, 1988, to determine the tax amounts
9received from retailers and servicemen pursuant to the
10Municipal Retailers' Occupation Tax and the Municipal Service
11Occupation Tax Act, which shall have deducted therefrom
12nine-twelfths of the certified Initial Sales Tax Amounts, the
13Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
14Tax Amounts as appropriate. For the State Fiscal Year 1991,
15this calculation shall be made by utilizing the period from
16October 1, 1988, to June 30, 1989, to determine the tax amounts
17received from retailers and servicemen pursuant to the
18Municipal Retailers' Occupation Tax and the Municipal Service
19Occupation Tax Act which shall have deducted therefrom
20nine-twelfths of the certified Initial Sales Tax Amounts,
21Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
22Tax Amounts as appropriate. For every State Fiscal Year
23thereafter, the applicable period shall be the 12 months
24beginning July 1 and ending June 30 to determine the tax
25amounts received which shall have deducted therefrom the
26certified Initial Sales Tax Amounts, the Adjusted Initial Sales

 

 

10000SB0001sam001- 65 -LRB100 06371 NHT 24204 a

1Tax Amounts or the Revised Initial Sales Tax Amounts, as the
2case may be.
3    (i) "Net State Sales Tax Increment" means the sum of the
4following: (a) 80% of the first $100,000 of State Sales Tax
5Increment annually generated within a State Sales Tax Boundary;
6(b) 60% of the amount in excess of $100,000 but not exceeding
7$500,000 of State Sales Tax Increment annually generated within
8a State Sales Tax Boundary; and (c) 40% of all amounts in
9excess of $500,000 of State Sales Tax Increment annually
10generated within a State Sales Tax Boundary. If, however, a
11municipality established a tax increment financing district in
12a county with a population in excess of 3,000,000 before
13January 1, 1986, and the municipality entered into a contract
14or issued bonds after January 1, 1986, but before December 31,
151986, to finance redevelopment project costs within a State
16Sales Tax Boundary, then the Net State Sales Tax Increment
17means, for the fiscal years beginning July 1, 1990, and July 1,
181991, 100% of the State Sales Tax Increment annually generated
19within a State Sales Tax Boundary; and notwithstanding any
20other provision of this Act, for those fiscal years the
21Department of Revenue shall distribute to those municipalities
22100% of their Net State Sales Tax Increment before any
23distribution to any other municipality and regardless of
24whether or not those other municipalities will receive 100% of
25their Net State Sales Tax Increment. For Fiscal Year 1999, and
26every year thereafter until the year 2007, for any municipality

 

 

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1that has not entered into a contract or has not issued bonds
2prior to June 1, 1988 to finance redevelopment project costs
3within a State Sales Tax Boundary, the Net State Sales Tax
4Increment shall be calculated as follows: By multiplying the
5Net State Sales Tax Increment by 90% in the State Fiscal Year
61999; 80% in the State Fiscal Year 2000; 70% in the State
7Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
8State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
9in the State Fiscal Year 2005; 20% in the State Fiscal Year
102006; and 10% in the State Fiscal Year 2007. No payment shall
11be made for State Fiscal Year 2008 and thereafter.
12    Municipalities that issued bonds in connection with a
13redevelopment project in a redevelopment project area within
14the State Sales Tax Boundary prior to July 29, 1991, or that
15entered into contracts in connection with a redevelopment
16project in a redevelopment project area before June 1, 1988,
17shall continue to receive their proportional share of the
18Illinois Tax Increment Fund distribution until the date on
19which the redevelopment project is completed or terminated. If,
20however, a municipality that issued bonds in connection with a
21redevelopment project in a redevelopment project area within
22the State Sales Tax Boundary prior to July 29, 1991 retires the
23bonds prior to June 30, 2007 or a municipality that entered
24into contracts in connection with a redevelopment project in a
25redevelopment project area before June 1, 1988 completes the
26contracts prior to June 30, 2007, then so long as the

 

 

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1redevelopment project is not completed or is not terminated,
2the Net State Sales Tax Increment shall be calculated,
3beginning on the date on which the bonds are retired or the
4contracts are completed, as follows: By multiplying the Net
5State Sales Tax Increment by 60% in the State Fiscal Year 2002;
650% in the State Fiscal Year 2003; 40% in the State Fiscal Year
72004; 30% in the State Fiscal Year 2005; 20% in the State
8Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
9payment shall be made for State Fiscal Year 2008 and
10thereafter. Refunding of any bonds issued prior to July 29,
111991, shall not alter the Net State Sales Tax Increment.
12    (j) "State Utility Tax Increment Amount" means an amount
13equal to the aggregate increase in State electric and gas tax
14charges imposed on owners and tenants, other than residential
15customers, of properties located within the redevelopment
16project area under Section 9-222 of the Public Utilities Act,
17over and above the aggregate of such charges as certified by
18the Department of Revenue and paid by owners and tenants, other
19than residential customers, of properties within the
20redevelopment project area during the base year, which shall be
21the calendar year immediately prior to the year of the adoption
22of the ordinance authorizing tax increment allocation
23financing.
24    (k) "Net State Utility Tax Increment" means the sum of the
25following: (a) 80% of the first $100,000 of State Utility Tax
26Increment annually generated by a redevelopment project area;

 

 

10000SB0001sam001- 68 -LRB100 06371 NHT 24204 a

1(b) 60% of the amount in excess of $100,000 but not exceeding
2$500,000 of the State Utility Tax Increment annually generated
3by a redevelopment project area; and (c) 40% of all amounts in
4excess of $500,000 of State Utility Tax Increment annually
5generated by a redevelopment project area. For the State Fiscal
6Year 1999, and every year thereafter until the year 2007, for
7any municipality that has not entered into a contract or has
8not issued bonds prior to June 1, 1988 to finance redevelopment
9project costs within a redevelopment project area, the Net
10State Utility Tax Increment shall be calculated as follows: By
11multiplying the Net State Utility Tax Increment by 90% in the
12State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
13in the State Fiscal Year 2001; 60% in the State Fiscal Year
142002; 50% in the State Fiscal Year 2003; 40% in the State
15Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
16State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
17No payment shall be made for the State Fiscal Year 2008 and
18thereafter.
19    Municipalities that issue bonds in connection with the
20redevelopment project during the period from June 1, 1988 until
213 years after the effective date of this Amendatory Act of 1988
22shall receive the Net State Utility Tax Increment, subject to
23appropriation, for 15 State Fiscal Years after the issuance of
24such bonds. For the 16th through the 20th State Fiscal Years
25after issuance of the bonds, the Net State Utility Tax
26Increment shall be calculated as follows: By multiplying the

 

 

10000SB0001sam001- 69 -LRB100 06371 NHT 24204 a

1Net State Utility Tax Increment by 90% in year 16; 80% in year
217; 70% in year 18; 60% in year 19; and 50% in year 20.
3Refunding of any bonds issued prior to June 1, 1988, shall not
4alter the revised Net State Utility Tax Increment payments set
5forth above.
6    (l) "Obligations" mean bonds, loans, debentures, notes,
7special certificates or other evidence of indebtedness issued
8by the municipality to carry out a redevelopment project or to
9refund outstanding obligations.
10    (m) "Payment in lieu of taxes" means those estimated tax
11revenues from real property in a redevelopment project area
12derived from real property that has been acquired by a
13municipality which according to the redevelopment project or
14plan is to be used for a private use which taxing districts
15would have received had a municipality not acquired the real
16property and adopted tax increment allocation financing and
17which would result from levies made after the time of the
18adoption of tax increment allocation financing to the time the
19current equalized value of real property in the redevelopment
20project area exceeds the total initial equalized value of real
21property in said area.
22    (n) "Redevelopment plan" means the comprehensive program
23of the municipality for development or redevelopment intended
24by the payment of redevelopment project costs to reduce or
25eliminate those conditions the existence of which qualified the
26redevelopment project area as a "blighted area" or

 

 

10000SB0001sam001- 70 -LRB100 06371 NHT 24204 a

1"conservation area" or combination thereof or "industrial park
2conservation area," and thereby to enhance the tax bases of the
3taxing districts which extend into the redevelopment project
4area, provided that, with respect to redevelopment project
5areas described in subsections (p-1) and (p-2), "redevelopment
6plan" means the comprehensive program of the affected
7municipality for the development of qualifying transit
8facilities. On and after November 1, 1999 (the effective date
9of Public Act 91-478), no redevelopment plan may be approved or
10amended that includes the development of vacant land (i) with a
11golf course and related clubhouse and other facilities or (ii)
12designated by federal, State, county, or municipal government
13as public land for outdoor recreational activities or for
14nature preserves and used for that purpose within 5 years prior
15to the adoption of the redevelopment plan. For the purpose of
16this subsection, "recreational activities" is limited to mean
17camping and hunting. Each redevelopment plan shall set forth in
18writing the program to be undertaken to accomplish the
19objectives and shall include but not be limited to:
20        (A) an itemized list of estimated redevelopment
21    project costs;
22        (B) evidence indicating that the redevelopment project
23    area on the whole has not been subject to growth and
24    development through investment by private enterprise,
25    provided that such evidence shall not be required for any
26    redevelopment project area located within a transit

 

 

10000SB0001sam001- 71 -LRB100 06371 NHT 24204 a

1    facility improvement area established pursuant to Section
2    11-74.4-3.3;
3        (C) an assessment of any financial impact of the
4    redevelopment project area on or any increased demand for
5    services from any taxing district affected by the plan and
6    any program to address such financial impact or increased
7    demand;
8        (D) the sources of funds to pay costs;
9        (E) the nature and term of the obligations to be
10    issued;
11        (F) the most recent equalized assessed valuation of the
12    redevelopment project area;
13        (G) an estimate as to the equalized assessed valuation
14    after redevelopment and the general land uses to apply in
15    the redevelopment project area;
16        (H) a commitment to fair employment practices and an
17    affirmative action plan;
18        (I) if it concerns an industrial park conservation
19    area, the plan shall also include a general description of
20    any proposed developer, user and tenant of any property, a
21    description of the type, structure and general character of
22    the facilities to be developed, a description of the type,
23    class and number of new employees to be employed in the
24    operation of the facilities to be developed; and
25        (J) if property is to be annexed to the municipality,
26    the plan shall include the terms of the annexation

 

 

10000SB0001sam001- 72 -LRB100 06371 NHT 24204 a

1    agreement.
2    The provisions of items (B) and (C) of this subsection (n)
3shall not apply to a municipality that before March 14, 1994
4(the effective date of Public Act 88-537) had fixed, either by
5its corporate authorities or by a commission designated under
6subsection (k) of Section 11-74.4-4, a time and place for a
7public hearing as required by subsection (a) of Section
811-74.4-5. No redevelopment plan shall be adopted unless a
9municipality complies with all of the following requirements:
10        (1) The municipality finds that the redevelopment
11    project area on the whole has not been subject to growth
12    and development through investment by private enterprise
13    and would not reasonably be anticipated to be developed
14    without the adoption of the redevelopment plan, provided,
15    however, that such a finding shall not be required with
16    respect to any redevelopment project area located within a
17    transit facility improvement area established pursuant to
18    Section 11-74.4-3.3.
19        (2) The municipality finds that the redevelopment plan
20    and project conform to the comprehensive plan for the
21    development of the municipality as a whole, or, for
22    municipalities with a population of 100,000 or more,
23    regardless of when the redevelopment plan and project was
24    adopted, the redevelopment plan and project either: (i)
25    conforms to the strategic economic development or
26    redevelopment plan issued by the designated planning

 

 

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1    authority of the municipality, or (ii) includes land uses
2    that have been approved by the planning commission of the
3    municipality.
4        (3) The redevelopment plan establishes the estimated
5    dates of completion of the redevelopment project and
6    retirement of obligations issued to finance redevelopment
7    project costs. Those dates may not be later than the dates
8    set forth under Section 11-74.4-3.5.
9        A municipality may by municipal ordinance amend an
10    existing redevelopment plan to conform to this paragraph
11    (3) as amended by Public Act 91-478, which municipal
12    ordinance may be adopted without further hearing or notice
13    and without complying with the procedures provided in this
14    Act pertaining to an amendment to or the initial approval
15    of a redevelopment plan and project and designation of a
16    redevelopment project area.
17        (3.5) The municipality finds, in the case of an
18    industrial park conservation area, also that the
19    municipality is a labor surplus municipality and that the
20    implementation of the redevelopment plan will reduce
21    unemployment, create new jobs and by the provision of new
22    facilities enhance the tax base of the taxing districts
23    that extend into the redevelopment project area.
24        (4) If any incremental revenues are being utilized
25    under Section 8(a)(1) or 8(a)(2) of this Act in
26    redevelopment project areas approved by ordinance after

 

 

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1    January 1, 1986, the municipality finds: (a) that the
2    redevelopment project area would not reasonably be
3    developed without the use of such incremental revenues, and
4    (b) that such incremental revenues will be exclusively
5    utilized for the development of the redevelopment project
6    area.
7        (5) If: (a) the redevelopment plan will not result in
8    displacement of residents from 10 or more inhabited
9    residential units, and the municipality certifies in the
10    plan that such displacement will not result from the plan;
11    or (b) the redevelopment plan is for a redevelopment
12    project area located within a transit facility improvement
13    area established pursuant to Section 11-74.4-3.3, and the
14    applicable project is subject to the process for evaluation
15    of environmental effects under the National Environmental
16    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
17    housing impact study need not be performed. If, however,
18    the redevelopment plan would result in the displacement of
19    residents from 10 or more inhabited residential units, or
20    if the redevelopment project area contains 75 or more
21    inhabited residential units and no certification is made,
22    then the municipality shall prepare, as part of the
23    separate feasibility report required by subsection (a) of
24    Section 11-74.4-5, a housing impact study.
25        Part I of the housing impact study shall include (i)
26    data as to whether the residential units are single family

 

 

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1    or multi-family units, (ii) the number and type of rooms
2    within the units, if that information is available, (iii)
3    whether the units are inhabited or uninhabited, as
4    determined not less than 45 days before the date that the
5    ordinance or resolution required by subsection (a) of
6    Section 11-74.4-5 is passed, and (iv) data as to the racial
7    and ethnic composition of the residents in the inhabited
8    residential units. The data requirement as to the racial
9    and ethnic composition of the residents in the inhabited
10    residential units shall be deemed to be fully satisfied by
11    data from the most recent federal census.
12        Part II of the housing impact study shall identify the
13    inhabited residential units in the proposed redevelopment
14    project area that are to be or may be removed. If inhabited
15    residential units are to be removed, then the housing
16    impact study shall identify (i) the number and location of
17    those units that will or may be removed, (ii) the
18    municipality's plans for relocation assistance for those
19    residents in the proposed redevelopment project area whose
20    residences are to be removed, (iii) the availability of
21    replacement housing for those residents whose residences
22    are to be removed, and shall identify the type, location,
23    and cost of the housing, and (iv) the type and extent of
24    relocation assistance to be provided.
25        (6) On and after November 1, 1999, the housing impact
26    study required by paragraph (5) shall be incorporated in

 

 

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1    the redevelopment plan for the redevelopment project area.
2        (7) On and after November 1, 1999, no redevelopment
3    plan shall be adopted, nor an existing plan amended, nor
4    shall residential housing that is occupied by households of
5    low-income and very low-income persons in currently
6    existing redevelopment project areas be removed after
7    November 1, 1999 unless the redevelopment plan provides,
8    with respect to inhabited housing units that are to be
9    removed for households of low-income and very low-income
10    persons, affordable housing and relocation assistance not
11    less than that which would be provided under the federal
12    Uniform Relocation Assistance and Real Property
13    Acquisition Policies Act of 1970 and the regulations under
14    that Act, including the eligibility criteria. Affordable
15    housing may be either existing or newly constructed
16    housing. For purposes of this paragraph (7), "low-income
17    households", "very low-income households", and "affordable
18    housing" have the meanings set forth in the Illinois
19    Affordable Housing Act. The municipality shall make a good
20    faith effort to ensure that this affordable housing is
21    located in or near the redevelopment project area within
22    the municipality.
23        (8) On and after November 1, 1999, if, after the
24    adoption of the redevelopment plan for the redevelopment
25    project area, any municipality desires to amend its
26    redevelopment plan to remove more inhabited residential

 

 

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1    units than specified in its original redevelopment plan,
2    that change shall be made in accordance with the procedures
3    in subsection (c) of Section 11-74.4-5.
4        (9) For redevelopment project areas designated prior
5    to November 1, 1999, the redevelopment plan may be amended
6    without further joint review board meeting or hearing,
7    provided that the municipality shall give notice of any
8    such changes by mail to each affected taxing district and
9    registrant on the interested party registry, to authorize
10    the municipality to expend tax increment revenues for
11    redevelopment project costs defined by paragraphs (5) and
12    (7.5), subparagraphs (E) and (F) of paragraph (11), and
13    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
14    long as the changes do not increase the total estimated
15    redevelopment project costs set out in the redevelopment
16    plan by more than 5% after adjustment for inflation from
17    the date the plan was adopted.
18    (o) "Redevelopment project" means any public and private
19development project in furtherance of the objectives of a
20redevelopment plan. On and after November 1, 1999 (the
21effective date of Public Act 91-478), no redevelopment plan may
22be approved or amended that includes the development of vacant
23land (i) with a golf course and related clubhouse and other
24facilities or (ii) designated by federal, State, county, or
25municipal government as public land for outdoor recreational
26activities or for nature preserves and used for that purpose

 

 

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1within 5 years prior to the adoption of the redevelopment plan.
2For the purpose of this subsection, "recreational activities"
3is limited to mean camping and hunting.
4    (p) "Redevelopment project area" means an area designated
5by the municipality, which is not less in the aggregate than 1
61/2 acres and in respect to which the municipality has made a
7finding that there exist conditions which cause the area to be
8classified as an industrial park conservation area or a
9blighted area or a conservation area, or a combination of both
10blighted areas and conservation areas.
11    (p-1) Notwithstanding any provision of this Act to the
12contrary, on and after August 25, 2009 (the effective date of
13Public Act 96-680), a redevelopment project area may include
14areas within a one-half mile radius of an existing or proposed
15Regional Transportation Authority Suburban Transit Access
16Route (STAR Line) station without a finding that the area is
17classified as an industrial park conservation area, a blighted
18area, a conservation area, or a combination thereof, but only
19if the municipality receives unanimous consent from the joint
20review board created to review the proposed redevelopment
21project area.
22    (p-2) Notwithstanding any provision of this Act to the
23contrary, on and after the effective date of this amendatory
24Act of the 99th General Assembly, a redevelopment project area
25may include areas within a transit facility improvement area
26that has been established pursuant to Section 11-74.4-3.3

 

 

10000SB0001sam001- 79 -LRB100 06371 NHT 24204 a

1without a finding that the area is classified as an industrial
2park conservation area, a blighted area, a conservation area,
3or any combination thereof.
4    (q) "Redevelopment project costs", except for
5redevelopment project areas created pursuant to subsection
6subsections (p-1) or (p-2), means and includes the sum total of
7all reasonable or necessary costs incurred or estimated to be
8incurred, and any such costs incidental to a redevelopment plan
9and a redevelopment project. Such costs include, without
10limitation, the following:
11        (1) Costs of studies, surveys, development of plans,
12    and specifications, implementation and administration of
13    the redevelopment plan including but not limited to staff
14    and professional service costs for architectural,
15    engineering, legal, financial, planning or other services,
16    provided however that no charges for professional services
17    may be based on a percentage of the tax increment
18    collected; except that on and after November 1, 1999 (the
19    effective date of Public Act 91-478), no contracts for
20    professional services, excluding architectural and
21    engineering services, may be entered into if the terms of
22    the contract extend beyond a period of 3 years. In
23    addition, "redevelopment project costs" shall not include
24    lobbying expenses. After consultation with the
25    municipality, each tax increment consultant or advisor to a
26    municipality that plans to designate or has designated a

 

 

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1    redevelopment project area shall inform the municipality
2    in writing of any contracts that the consultant or advisor
3    has entered into with entities or individuals that have
4    received, or are receiving, payments financed by tax
5    increment revenues produced by the redevelopment project
6    area with respect to which the consultant or advisor has
7    performed, or will be performing, service for the
8    municipality. This requirement shall be satisfied by the
9    consultant or advisor before the commencement of services
10    for the municipality and thereafter whenever any other
11    contracts with those individuals or entities are executed
12    by the consultant or advisor;
13        (1.5) After July 1, 1999, annual administrative costs
14    shall not include general overhead or administrative costs
15    of the municipality that would still have been incurred by
16    the municipality if the municipality had not designated a
17    redevelopment project area or approved a redevelopment
18    plan;
19        (1.6) The cost of marketing sites within the
20    redevelopment project area to prospective businesses,
21    developers, and investors;
22        (2) Property assembly costs, including but not limited
23    to acquisition of land and other property, real or
24    personal, or rights or interests therein, demolition of
25    buildings, site preparation, site improvements that serve
26    as an engineered barrier addressing ground level or below

 

 

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1    ground environmental contamination, including, but not
2    limited to parking lots and other concrete or asphalt
3    barriers, and the clearing and grading of land;
4        (3) Costs of rehabilitation, reconstruction or repair
5    or remodeling of existing public or private buildings,
6    fixtures, and leasehold improvements; and the cost of
7    replacing an existing public building if pursuant to the
8    implementation of a redevelopment project the existing
9    public building is to be demolished to use the site for
10    private investment or devoted to a different use requiring
11    private investment; including any direct or indirect costs
12    relating to Green Globes or LEED certified construction
13    elements or construction elements with an equivalent
14    certification;
15        (4) Costs of the construction of public works or
16    improvements, including any direct or indirect costs
17    relating to Green Globes or LEED certified construction
18    elements or construction elements with an equivalent
19    certification, except that on and after November 1, 1999,
20    redevelopment project costs shall not include the cost of
21    constructing a new municipal public building principally
22    used to provide offices, storage space, or conference
23    facilities or vehicle storage, maintenance, or repair for
24    administrative, public safety, or public works personnel
25    and that is not intended to replace an existing public
26    building as provided under paragraph (3) of subsection (q)

 

 

10000SB0001sam001- 82 -LRB100 06371 NHT 24204 a

1    of Section 11-74.4-3 unless either (i) the construction of
2    the new municipal building implements a redevelopment
3    project that was included in a redevelopment plan that was
4    adopted by the municipality prior to November 1, 1999, (ii)
5    the municipality makes a reasonable determination in the
6    redevelopment plan, supported by information that provides
7    the basis for that determination, that the new municipal
8    building is required to meet an increase in the need for
9    public safety purposes anticipated to result from the
10    implementation of the redevelopment plan, or (iii) the new
11    municipal public building is for the storage, maintenance,
12    or repair of transit vehicles and is located in a transit
13    facility improvement area that has been established
14    pursuant to Section 11-74.4-3.3;
15        (5) Costs of job training and retraining projects,
16    including the cost of "welfare to work" programs
17    implemented by businesses located within the redevelopment
18    project area;
19        (6) Financing costs, including but not limited to all
20    necessary and incidental expenses related to the issuance
21    of obligations and which may include payment of interest on
22    any obligations issued hereunder including interest
23    accruing during the estimated period of construction of any
24    redevelopment project for which such obligations are
25    issued and for not exceeding 36 months thereafter and
26    including reasonable reserves related thereto;

 

 

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1        (7) To the extent the municipality by written agreement
2    accepts and approves the same, all or a portion of a taxing
3    district's capital costs resulting from the redevelopment
4    project necessarily incurred or to be incurred within a
5    taxing district in furtherance of the objectives of the
6    redevelopment plan and project; .
7        (7.5) For redevelopment project areas designated (or
8    redevelopment project areas amended to add or increase the
9    number of tax-increment-financing assisted housing units)
10    on or after November 1, 1999, an elementary, secondary, or
11    unit school district's increased costs attributable to
12    assisted housing units located within the redevelopment
13    project area for which the developer or redeveloper
14    receives financial assistance through an agreement with
15    the municipality or because the municipality incurs the
16    cost of necessary infrastructure improvements within the
17    boundaries of the assisted housing sites necessary for the
18    completion of that housing as authorized by this Act, and
19    which costs shall be paid by the municipality from the
20    Special Tax Allocation Fund when the tax increment revenue
21    is received as a result of the assisted housing units and
22    shall be calculated annually as follows:
23            (A) for foundation districts, excluding any school
24        district in a municipality with a population in excess
25        of 1,000,000, by multiplying the district's increase
26        in attendance resulting from the net increase in new

 

 

10000SB0001sam001- 84 -LRB100 06371 NHT 24204 a

1        students enrolled in that school district who reside in
2        housing units within the redevelopment project area
3        that have received financial assistance through an
4        agreement with the municipality or because the
5        municipality incurs the cost of necessary
6        infrastructure improvements within the boundaries of
7        the housing sites necessary for the completion of that
8        housing as authorized by this Act since the designation
9        of the redevelopment project area by the most recently
10        available per capita tuition cost as defined in Section
11        10-20.12a of the School Code less any increase in
12        general State aid as defined in Section 18-8.05 of the
13        School Code or evidence-based funding as defined in
14        Section 18-8.15 of the School Code attributable to
15        these added new students subject to the following
16        annual limitations:
17                (i) for unit school districts with a district
18            average 1995-96 Per Capita Tuition Charge of less
19            than $5,900, no more than 25% of the total amount
20            of property tax increment revenue produced by
21            those housing units that have received tax
22            increment finance assistance under this Act;
23                (ii) for elementary school districts with a
24            district average 1995-96 Per Capita Tuition Charge
25            of less than $5,900, no more than 17% of the total
26            amount of property tax increment revenue produced

 

 

10000SB0001sam001- 85 -LRB100 06371 NHT 24204 a

1            by those housing units that have received tax
2            increment finance assistance under this Act; and
3                (iii) for secondary school districts with a
4            district average 1995-96 Per Capita Tuition Charge
5            of less than $5,900, no more than 8% of the total
6            amount of property tax increment revenue produced
7            by those housing units that have received tax
8            increment finance assistance under this Act.
9            (B) For alternate method districts, flat grant
10        districts, and foundation districts with a district
11        average 1995-96 Per Capita Tuition Charge equal to or
12        more than $5,900, excluding any school district with a
13        population in excess of 1,000,000, by multiplying the
14        district's increase in attendance resulting from the
15        net increase in new students enrolled in that school
16        district who reside in housing units within the
17        redevelopment project area that have received
18        financial assistance through an agreement with the
19        municipality or because the municipality incurs the
20        cost of necessary infrastructure improvements within
21        the boundaries of the housing sites necessary for the
22        completion of that housing as authorized by this Act
23        since the designation of the redevelopment project
24        area by the most recently available per capita tuition
25        cost as defined in Section 10-20.12a of the School Code
26        less any increase in general state aid as defined in

 

 

10000SB0001sam001- 86 -LRB100 06371 NHT 24204 a

1        Section 18-8.05 of the School Code or evidence-based
2        funding as defined in Section 18-8.15 of the School
3        Code attributable to these added new students subject
4        to the following annual limitations:
5                (i) for unit school districts, no more than 40%
6            of the total amount of property tax increment
7            revenue produced by those housing units that have
8            received tax increment finance assistance under
9            this Act;
10                (ii) for elementary school districts, no more
11            than 27% of the total amount of property tax
12            increment revenue produced by those housing units
13            that have received tax increment finance
14            assistance under this Act; and
15                (iii) for secondary school districts, no more
16            than 13% of the total amount of property tax
17            increment revenue produced by those housing units
18            that have received tax increment finance
19            assistance under this Act.
20            (C) For any school district in a municipality with
21        a population in excess of 1,000,000, the following
22        restrictions shall apply to the reimbursement of
23        increased costs under this paragraph (7.5):
24                (i) no increased costs shall be reimbursed
25            unless the school district certifies that each of
26            the schools affected by the assisted housing

 

 

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1            project is at or over its student capacity;
2                (ii) the amount reimbursable shall be reduced
3            by the value of any land donated to the school
4            district by the municipality or developer, and by
5            the value of any physical improvements made to the
6            schools by the municipality or developer; and
7                (iii) the amount reimbursed may not affect
8            amounts otherwise obligated by the terms of any
9            bonds, notes, or other funding instruments, or the
10            terms of any redevelopment agreement.
11        Any school district seeking payment under this
12        paragraph (7.5) shall, after July 1 and before
13        September 30 of each year, provide the municipality
14        with reasonable evidence to support its claim for
15        reimbursement before the municipality shall be
16        required to approve or make the payment to the school
17        district. If the school district fails to provide the
18        information during this period in any year, it shall
19        forfeit any claim to reimbursement for that year.
20        School districts may adopt a resolution waiving the
21        right to all or a portion of the reimbursement
22        otherwise required by this paragraph (7.5). By
23        acceptance of this reimbursement the school district
24        waives the right to directly or indirectly set aside,
25        modify, or contest in any manner the establishment of
26        the redevelopment project area or projects;

 

 

10000SB0001sam001- 88 -LRB100 06371 NHT 24204 a

1        (7.7) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after January 1, 2005 (the effective date of Public
5    Act 93-961), a public library district's increased costs
6    attributable to assisted housing units located within the
7    redevelopment project area for which the developer or
8    redeveloper receives financial assistance through an
9    agreement with the municipality or because the
10    municipality incurs the cost of necessary infrastructure
11    improvements within the boundaries of the assisted housing
12    sites necessary for the completion of that housing as
13    authorized by this Act shall be paid to the library
14    district by the municipality from the Special Tax
15    Allocation Fund when the tax increment revenue is received
16    as a result of the assisted housing units. This paragraph
17    (7.7) applies only if (i) the library district is located
18    in a county that is subject to the Property Tax Extension
19    Limitation Law or (ii) the library district is not located
20    in a county that is subject to the Property Tax Extension
21    Limitation Law but the district is prohibited by any other
22    law from increasing its tax levy rate without a prior voter
23    referendum.
24        The amount paid to a library district under this
25    paragraph (7.7) shall be calculated by multiplying (i) the
26    net increase in the number of persons eligible to obtain a

 

 

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1    library card in that district who reside in housing units
2    within the redevelopment project area that have received
3    financial assistance through an agreement with the
4    municipality or because the municipality incurs the cost of
5    necessary infrastructure improvements within the
6    boundaries of the housing sites necessary for the
7    completion of that housing as authorized by this Act since
8    the designation of the redevelopment project area by (ii)
9    the per-patron cost of providing library services so long
10    as it does not exceed $120. The per-patron cost shall be
11    the Total Operating Expenditures Per Capita for the library
12    in the previous fiscal year. The municipality may deduct
13    from the amount that it must pay to a library district
14    under this paragraph any amount that it has voluntarily
15    paid to the library district from the tax increment
16    revenue. The amount paid to a library district under this
17    paragraph (7.7) shall be no more than 2% of the amount
18    produced by the assisted housing units and deposited into
19    the Special Tax Allocation Fund.
20        A library district is not eligible for any payment
21    under this paragraph (7.7) unless the library district has
22    experienced an increase in the number of patrons from the
23    municipality that created the tax-increment-financing
24    district since the designation of the redevelopment
25    project area.
26        Any library district seeking payment under this

 

 

10000SB0001sam001- 90 -LRB100 06371 NHT 24204 a

1    paragraph (7.7) shall, after July 1 and before September 30
2    of each year, provide the municipality with convincing
3    evidence to support its claim for reimbursement before the
4    municipality shall be required to approve or make the
5    payment to the library district. If the library district
6    fails to provide the information during this period in any
7    year, it shall forfeit any claim to reimbursement for that
8    year. Library districts may adopt a resolution waiving the
9    right to all or a portion of the reimbursement otherwise
10    required by this paragraph (7.7). By acceptance of such
11    reimbursement, the library district shall forfeit any
12    right to directly or indirectly set aside, modify, or
13    contest in any manner whatsoever the establishment of the
14    redevelopment project area or projects;
15        (8) Relocation costs to the extent that a municipality
16    determines that relocation costs shall be paid or is
17    required to make payment of relocation costs by federal or
18    State law or in order to satisfy subparagraph (7) of
19    subsection (n);
20        (9) Payment in lieu of taxes;
21        (10) Costs of job training, retraining, advanced
22    vocational education or career education, including but
23    not limited to courses in occupational, semi-technical or
24    technical fields leading directly to employment, incurred
25    by one or more taxing districts, provided that such costs
26    (i) are related to the establishment and maintenance of

 

 

10000SB0001sam001- 91 -LRB100 06371 NHT 24204 a

1    additional job training, advanced vocational education or
2    career education programs for persons employed or to be
3    employed by employers located in a redevelopment project
4    area; and (ii) when incurred by a taxing district or taxing
5    districts other than the municipality, are set forth in a
6    written agreement by or among the municipality and the
7    taxing district or taxing districts, which agreement
8    describes the program to be undertaken, including but not
9    limited to the number of employees to be trained, a
10    description of the training and services to be provided,
11    the number and type of positions available or to be
12    available, itemized costs of the program and sources of
13    funds to pay for the same, and the term of the agreement.
14    Such costs include, specifically, the payment by community
15    college districts of costs pursuant to Sections 3-37, 3-38,
16    3-40 and 3-40.1 of the Public Community College Act and by
17    school districts of costs pursuant to Sections 10-22.20a
18    and 10-23.3a of the The School Code;
19        (11) Interest cost incurred by a redeveloper related to
20    the construction, renovation or rehabilitation of a
21    redevelopment project provided that:
22            (A) such costs are to be paid directly from the
23        special tax allocation fund established pursuant to
24        this Act;
25            (B) such payments in any one year may not exceed
26        30% of the annual interest costs incurred by the

 

 

10000SB0001sam001- 92 -LRB100 06371 NHT 24204 a

1        redeveloper with regard to the redevelopment project
2        during that year;
3            (C) if there are not sufficient funds available in
4        the special tax allocation fund to make the payment
5        pursuant to this paragraph (11) then the amounts so due
6        shall accrue and be payable when sufficient funds are
7        available in the special tax allocation fund;
8            (D) the total of such interest payments paid
9        pursuant to this Act may not exceed 30% of the total
10        (i) cost paid or incurred by the redeveloper for the
11        redevelopment project plus (ii) redevelopment project
12        costs excluding any property assembly costs and any
13        relocation costs incurred by a municipality pursuant
14        to this Act; and
15            (E) the cost limits set forth in subparagraphs (B)
16        and (D) of paragraph (11) shall be modified for the
17        financing of rehabilitated or new housing units for
18        low-income households and very low-income households,
19        as defined in Section 3 of the Illinois Affordable
20        Housing Act. The percentage of 75% shall be substituted
21        for 30% in subparagraphs (B) and (D) of paragraph (11);
22        and .
23            (F) instead Instead of the eligible costs provided
24        by subparagraphs (B) and (D) of paragraph (11), as
25        modified by this subparagraph, and notwithstanding any
26        other provisions of this Act to the contrary, the

 

 

10000SB0001sam001- 93 -LRB100 06371 NHT 24204 a

1        municipality may pay from tax increment revenues up to
2        50% of the cost of construction of new housing units to
3        be occupied by low-income households and very
4        low-income households as defined in Section 3 of the
5        Illinois Affordable Housing Act. The cost of
6        construction of those units may be derived from the
7        proceeds of bonds issued by the municipality under this
8        Act or other constitutional or statutory authority or
9        from other sources of municipal revenue that may be
10        reimbursed from tax increment revenues or the proceeds
11        of bonds issued to finance the construction of that
12        housing.
13            The eligible costs provided under this
14        subparagraph (F) of paragraph (11) shall be an eligible
15        cost for the construction, renovation, and
16        rehabilitation of all low and very low-income housing
17        units, as defined in Section 3 of the Illinois
18        Affordable Housing Act, within the redevelopment
19        project area. If the low and very low-income units are
20        part of a residential redevelopment project that
21        includes units not affordable to low and very
22        low-income households, only the low and very
23        low-income units shall be eligible for benefits under
24        this subparagraph (F) of paragraph (11). The standards
25        for maintaining the occupancy by low-income households
26        and very low-income households, as defined in Section 3

 

 

10000SB0001sam001- 94 -LRB100 06371 NHT 24204 a

1        of the Illinois Affordable Housing Act, of those units
2        constructed with eligible costs made available under
3        the provisions of this subparagraph (F) of paragraph
4        (11) shall be established by guidelines adopted by the
5        municipality. The responsibility for annually
6        documenting the initial occupancy of the units by
7        low-income households and very low-income households,
8        as defined in Section 3 of the Illinois Affordable
9        Housing Act, shall be that of the then current owner of
10        the property. For ownership units, the guidelines will
11        provide, at a minimum, for a reasonable recapture of
12        funds, or other appropriate methods designed to
13        preserve the original affordability of the ownership
14        units. For rental units, the guidelines will provide,
15        at a minimum, for the affordability of rent to low and
16        very low-income households. As units become available,
17        they shall be rented to income-eligible tenants. The
18        municipality may modify these guidelines from time to
19        time; the guidelines, however, shall be in effect for
20        as long as tax increment revenue is being used to pay
21        for costs associated with the units or for the
22        retirement of bonds issued to finance the units or for
23        the life of the redevelopment project area, whichever
24        is later; .
25        (11.5) If the redevelopment project area is located
26    within a municipality with a population of more than

 

 

10000SB0001sam001- 95 -LRB100 06371 NHT 24204 a

1    100,000, the cost of day care services for children of
2    employees from low-income families working for businesses
3    located within the redevelopment project area and all or a
4    portion of the cost of operation of day care centers
5    established by redevelopment project area businesses to
6    serve employees from low-income families working in
7    businesses located in the redevelopment project area. For
8    the purposes of this paragraph, "low-income families"
9    means families whose annual income does not exceed 80% of
10    the municipal, county, or regional median income, adjusted
11    for family size, as the annual income and municipal,
12    county, or regional median income are determined from time
13    to time by the United States Department of Housing and
14    Urban Development.
15    (12) Unless explicitly stated herein the cost of
16construction of new privately-owned buildings shall not be an
17eligible redevelopment project cost.
18    (13) After November 1, 1999 (the effective date of Public
19Act 91-478), none of the redevelopment project costs enumerated
20in this subsection shall be eligible redevelopment project
21costs if those costs would provide direct financial support to
22a retail entity initiating operations in the redevelopment
23project area while terminating operations at another Illinois
24location within 10 miles of the redevelopment project area but
25outside the boundaries of the redevelopment project area
26municipality. For purposes of this paragraph, termination

 

 

10000SB0001sam001- 96 -LRB100 06371 NHT 24204 a

1means a closing of a retail operation that is directly related
2to the opening of the same operation or like retail entity
3owned or operated by more than 50% of the original ownership in
4a redevelopment project area, but it does not mean closing an
5operation for reasons beyond the control of the retail entity,
6as documented by the retail entity, subject to a reasonable
7finding by the municipality that the current location contained
8inadequate space, had become economically obsolete, or was no
9longer a viable location for the retailer or serviceman.
10    (14) No cost shall be a redevelopment project cost in a
11redevelopment project area if used to demolish, remove, or
12substantially modify a historic resource, after August 26, 2008
13(the effective date of Public Act 95-934), unless no prudent
14and feasible alternative exists. "Historic resource" for the
15purpose of this paragraph item (14) means (i) a place or
16structure that is included or eligible for inclusion on the
17National Register of Historic Places or (ii) a contributing
18structure in a district on the National Register of Historic
19Places. This paragraph item (14) does not apply to a place or
20structure for which demolition, removal, or modification is
21subject to review by the preservation agency of a Certified
22Local Government designated as such by the National Park
23Service of the United States Department of the Interior.
24    If a special service area has been established pursuant to
25the Special Service Area Tax Act or Special Service Area Tax
26Law, then any tax increment revenues derived from the tax

 

 

10000SB0001sam001- 97 -LRB100 06371 NHT 24204 a

1imposed pursuant to the Special Service Area Tax Act or Special
2Service Area Tax Law may be used within the redevelopment
3project area for the purposes permitted by that Act or Law as
4well as the purposes permitted by this Act.
5    (q-1) For redevelopment project areas created pursuant to
6subsection (p-1), redevelopment project costs are limited to
7those costs in paragraph (q) that are related to the existing
8or proposed Regional Transportation Authority Suburban Transit
9Access Route (STAR Line) station.
10    (q-2) For a redevelopment project area located within a
11transit facility improvement area established pursuant to
12Section 11-74.4-3.3, redevelopment project costs means those
13costs described in subsection (q) that are related to the
14construction, reconstruction, rehabilitation, remodeling, or
15repair of any existing or proposed transit facility.
16    (r) "State Sales Tax Boundary" means the redevelopment
17project area or the amended redevelopment project area
18boundaries which are determined pursuant to subsection (9) of
19Section 11-74.4-8a of this Act. The Department of Revenue shall
20certify pursuant to subsection (9) of Section 11-74.4-8a the
21appropriate boundaries eligible for the determination of State
22Sales Tax Increment.
23    (s) "State Sales Tax Increment" means an amount equal to
24the increase in the aggregate amount of taxes paid by retailers
25and servicemen, other than retailers and servicemen subject to
26the Public Utilities Act, on transactions at places of business

 

 

10000SB0001sam001- 98 -LRB100 06371 NHT 24204 a

1located within a State Sales Tax Boundary pursuant to the
2Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
3Tax Act, and the Service Occupation Tax Act, except such
4portion of such increase that is paid into the State and Local
5Sales Tax Reform Fund, the Local Government Distributive Fund,
6the Local Government Tax Fund and the County and Mass Transit
7District Fund, for as long as State participation exists, over
8and above the Initial Sales Tax Amounts, Adjusted Initial Sales
9Tax Amounts or the Revised Initial Sales Tax Amounts for such
10taxes as certified by the Department of Revenue and paid under
11those Acts by retailers and servicemen on transactions at
12places of business located within the State Sales Tax Boundary
13during the base year which shall be the calendar year
14immediately prior to the year in which the municipality adopted
15tax increment allocation financing, less 3.0% of such amounts
16generated under the Retailers' Occupation Tax Act, Use Tax Act
17and Service Use Tax Act and the Service Occupation Tax Act,
18which sum shall be appropriated to the Department of Revenue to
19cover its costs of administering and enforcing this Section.
20For purposes of computing the aggregate amount of such taxes
21for base years occurring prior to 1985, the Department of
22Revenue shall compute the Initial Sales Tax Amount for such
23taxes and deduct therefrom an amount equal to 4% of the
24aggregate amount of taxes per year for each year the base year
25is prior to 1985, but not to exceed a total deduction of 12%.
26The amount so determined shall be known as the "Adjusted

 

 

10000SB0001sam001- 99 -LRB100 06371 NHT 24204 a

1Initial Sales Tax Amount". For purposes of determining the
2State Sales Tax Increment the Department of Revenue shall for
3each period subtract from the tax amounts received from
4retailers and servicemen on transactions located in the State
5Sales Tax Boundary, the certified Initial Sales Tax Amounts,
6Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
7Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
8the Service Use Tax Act and the Service Occupation Tax Act. For
9the State Fiscal Year 1989 this calculation shall be made by
10utilizing the calendar year 1987 to determine the tax amounts
11received. For the State Fiscal Year 1990, this calculation
12shall be made by utilizing the period from January 1, 1988,
13until September 30, 1988, to determine the tax amounts received
14from retailers and servicemen, which shall have deducted
15therefrom nine-twelfths of the certified Initial Sales Tax
16Amounts, Adjusted Initial Sales Tax Amounts or the Revised
17Initial Sales Tax Amounts as appropriate. For the State Fiscal
18Year 1991, this calculation shall be made by utilizing the
19period from October 1, 1988, until June 30, 1989, to determine
20the tax amounts received from retailers and servicemen, which
21shall have deducted therefrom nine-twelfths of the certified
22Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
23Amounts or the Revised Initial Sales Tax Amounts as
24appropriate. For every State Fiscal Year thereafter, the
25applicable period shall be the 12 months beginning July 1 and
26ending on June 30, to determine the tax amounts received which

 

 

10000SB0001sam001- 100 -LRB100 06371 NHT 24204 a

1shall have deducted therefrom the certified Initial Sales Tax
2Amounts, Adjusted Initial Sales Tax Amounts or the Revised
3Initial Sales Tax Amounts. Municipalities intending to receive
4a distribution of State Sales Tax Increment must report a list
5of retailers to the Department of Revenue by October 31, 1988
6and by July 31, of each year thereafter.
7    (t) "Taxing districts" means counties, townships, cities
8and incorporated towns and villages, school, road, park,
9sanitary, mosquito abatement, forest preserve, public health,
10fire protection, river conservancy, tuberculosis sanitarium
11and any other municipal corporations or districts with the
12power to levy taxes.
13    (u) "Taxing districts' capital costs" means those costs of
14taxing districts for capital improvements that are found by the
15municipal corporate authorities to be necessary and directly
16result from the redevelopment project.
17    (v) As used in subsection (a) of Section 11-74.4-3 of this
18Act, "vacant land" means any parcel or combination of parcels
19of real property without industrial, commercial, and
20residential buildings which has not been used for commercial
21agricultural purposes within 5 years prior to the designation
22of the redevelopment project area, unless the parcel is
23included in an industrial park conservation area or the parcel
24has been subdivided; provided that if the parcel was part of a
25larger tract that has been divided into 3 or more smaller
26tracts that were accepted for recording during the period from

 

 

10000SB0001sam001- 101 -LRB100 06371 NHT 24204 a

11950 to 1990, then the parcel shall be deemed to have been
2subdivided, and all proceedings and actions of the municipality
3taken in that connection with respect to any previously
4approved or designated redevelopment project area or amended
5redevelopment project area are hereby validated and hereby
6declared to be legally sufficient for all purposes of this Act.
7For purposes of this Section and only for land subject to the
8subdivision requirements of the Plat Act, land is subdivided
9when the original plat of the proposed Redevelopment Project
10Area or relevant portion thereof has been properly certified,
11acknowledged, approved, and recorded or filed in accordance
12with the Plat Act and a preliminary plat, if any, for any
13subsequent phases of the proposed Redevelopment Project Area or
14relevant portion thereof has been properly approved and filed
15in accordance with the applicable ordinance of the
16municipality.
17    (w) "Annual Total Increment" means the sum of each
18municipality's annual Net Sales Tax Increment and each
19municipality's annual Net Utility Tax Increment. The ratio of
20the Annual Total Increment of each municipality to the Annual
21Total Increment for all municipalities, as most recently
22calculated by the Department, shall determine the proportional
23shares of the Illinois Tax Increment Fund to be distributed to
24each municipality.
25    (x) "LEED certified" means any certification level of
26construction elements by a qualified Leadership in Energy and

 

 

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1Environmental Design Accredited Professional as determined by
2the U.S. Green Building Council.
3    (y) "Green Globes certified" means any certification level
4of construction elements by a qualified Green Globes
5Professional as determined by the Green Building Initiative.
6(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
7    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
8    Sec. 11-74.4-8. Tax increment allocation financing. A
9municipality may not adopt tax increment financing in a
10redevelopment project area after the effective date of this
11amendatory Act of 1997 that will encompass an area that is
12currently included in an enterprise zone created under the
13Illinois Enterprise Zone Act unless that municipality,
14pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
15amends the enterprise zone designating ordinance to limit the
16eligibility for tax abatements as provided in Section 5.4.1 of
17the Illinois Enterprise Zone Act. A municipality, at the time a
18redevelopment project area is designated, may adopt tax
19increment allocation financing by passing an ordinance
20providing that the ad valorem taxes, if any, arising from the
21levies upon taxable real property in such redevelopment project
22area by taxing districts and tax rates determined in the manner
23provided in paragraph (c) of Section 11-74.4-9 each year after
24the effective date of the ordinance until redevelopment project
25costs and all municipal obligations financing redevelopment

 

 

10000SB0001sam001- 103 -LRB100 06371 NHT 24204 a

1project costs incurred under this Division have been paid shall
2be divided as follows, provided, however, that with respect to
3any redevelopment project area located within a transit
4facility improvement area established pursuant to Section
511-74.4-3.3 in a municipality with a population of 1,000,000 or
6more, ad valorem taxes, if any, arising from the levies upon
7taxable real property in such redevelopment project area shall
8be allocated as specifically provided in this Section:
9        (a) That portion of taxes levied upon each taxable lot,
10    block, tract or parcel of real property which is
11    attributable to the lower of the current equalized assessed
12    value or the initial equalized assessed value of each such
13    taxable lot, block, tract or parcel of real property in the
14    redevelopment project area shall be allocated to and when
15    collected shall be paid by the county collector to the
16    respective affected taxing districts in the manner
17    required by law in the absence of the adoption of tax
18    increment allocation financing.
19        (b) Except from a tax levied by a township to retire
20    bonds issued to satisfy court-ordered damages, that
21    portion, if any, of such taxes which is attributable to the
22    increase in the current equalized assessed valuation of
23    each taxable lot, block, tract or parcel of real property
24    in the redevelopment project area over and above the
25    initial equalized assessed value of each property in the
26    project area shall be allocated to and when collected shall

 

 

10000SB0001sam001- 104 -LRB100 06371 NHT 24204 a

1    be paid to the municipal treasurer who shall deposit said
2    taxes into a special fund called the special tax allocation
3    fund of the municipality for the purpose of paying
4    redevelopment project costs and obligations incurred in
5    the payment thereof. In any county with a population of
6    3,000,000 or more that has adopted a procedure for
7    collecting taxes that provides for one or more of the
8    installments of the taxes to be billed and collected on an
9    estimated basis, the municipal treasurer shall be paid for
10    deposit in the special tax allocation fund of the
11    municipality, from the taxes collected from estimated
12    bills issued for property in the redevelopment project
13    area, the difference between the amount actually collected
14    from each taxable lot, block, tract, or parcel of real
15    property within the redevelopment project area and an
16    amount determined by multiplying the rate at which taxes
17    were last extended against the taxable lot, block, track,
18    or parcel of real property in the manner provided in
19    subsection (c) of Section 11-74.4-9 by the initial
20    equalized assessed value of the property divided by the
21    number of installments in which real estate taxes are
22    billed and collected within the county; provided that the
23    payments on or before December 31, 1999 to a municipal
24    treasurer shall be made only if each of the following
25    conditions are met:
26        (1) The total equalized assessed value of the

 

 

10000SB0001sam001- 105 -LRB100 06371 NHT 24204 a

1        redevelopment project area as last determined was not
2        less than 175% of the total initial equalized assessed
3        value.
4        (2) Not more than 50% of the total equalized assessed
5        value of the redevelopment project area as last
6        determined is attributable to a piece of property
7        assigned a single real estate index number.
8        (3) The municipal clerk has certified to the county
9        clerk that the municipality has issued its obligations
10        to which there has been pledged the incremental
11        property taxes of the redevelopment project area or
12        taxes levied and collected on any or all property in
13        the municipality or the full faith and credit of the
14        municipality to pay or secure payment for all or a
15        portion of the redevelopment project costs. The
16        certification shall be filed annually no later than
17        September 1 for the estimated taxes to be distributed
18        in the following year; however, for the year 1992 the
19        certification shall be made at any time on or before
20        March 31, 1992.
21        (4) The municipality has not requested that the total
22        initial equalized assessed value of real property be
23        adjusted as provided in subsection (b) of Section
24        11-74.4-9.
25        The conditions of paragraphs (1) through (4) do not
26    apply after December 31, 1999 to payments to a municipal

 

 

10000SB0001sam001- 106 -LRB100 06371 NHT 24204 a

1    treasurer made by a county with 3,000,000 or more
2    inhabitants that has adopted an estimated billing
3    procedure for collecting taxes. If a county that has
4    adopted the estimated billing procedure makes an erroneous
5    overpayment of tax revenue to the municipal treasurer, then
6    the county may seek a refund of that overpayment. The
7    county shall send the municipal treasurer a notice of
8    liability for the overpayment on or before the mailing date
9    of the next real estate tax bill within the county. The
10    refund shall be limited to the amount of the overpayment.
11        It is the intent of this Division that after the
12    effective date of this amendatory Act of 1988 a
13    municipality's own ad valorem tax arising from levies on
14    taxable real property be included in the determination of
15    incremental revenue in the manner provided in paragraph (c)
16    of Section 11-74.4-9. If the municipality does not extend
17    such a tax, it shall annually deposit in the municipality's
18    Special Tax Increment Fund an amount equal to 10% of the
19    total contributions to the fund from all other taxing
20    districts in that year. The annual 10% deposit required by
21    this paragraph shall be limited to the actual amount of
22    municipally produced incremental tax revenues available to
23    the municipality from taxpayers located in the
24    redevelopment project area in that year if: (a) the plan
25    for the area restricts the use of the property primarily to
26    industrial purposes, (b) the municipality establishing the

 

 

10000SB0001sam001- 107 -LRB100 06371 NHT 24204 a

1    redevelopment project area is a home-rule community with a
2    1990 population of between 25,000 and 50,000, (c) the
3    municipality is wholly located within a county with a 1990
4    population of over 750,000 and (d) the redevelopment
5    project area was established by the municipality prior to
6    June 1, 1990. This payment shall be in lieu of a
7    contribution of ad valorem taxes on real property. If no
8    such payment is made, any redevelopment project area of the
9    municipality shall be dissolved.
10        If a municipality has adopted tax increment allocation
11    financing by ordinance and the County Clerk thereafter
12    certifies the "total initial equalized assessed value as
13    adjusted" of the taxable real property within such
14    redevelopment project area in the manner provided in
15    paragraph (b) of Section 11-74.4-9, each year after the
16    date of the certification of the total initial equalized
17    assessed value as adjusted until redevelopment project
18    costs and all municipal obligations financing
19    redevelopment project costs have been paid the ad valorem
20    taxes, if any, arising from the levies upon the taxable
21    real property in such redevelopment project area by taxing
22    districts and tax rates determined in the manner provided
23    in paragraph (c) of Section 11-74.4-9 shall be divided as
24    follows, provided, however, that with respect to any
25    redevelopment project area located within a transit
26    facility improvement area established pursuant to Section

 

 

10000SB0001sam001- 108 -LRB100 06371 NHT 24204 a

1    11-74.4-3.3 in a municipality with a population of
2    1,000,000 or more, ad valorem taxes, if any, arising from
3    the levies upon the taxable real property in such
4    redevelopment project area shall be allocated as
5    specifically provided in this Section:
6        (1) That portion of the taxes levied upon each taxable
7        lot, block, tract or parcel of real property which is
8        attributable to the lower of the current equalized
9        assessed value or "current equalized assessed value as
10        adjusted" or the initial equalized assessed value of
11        each such taxable lot, block, tract, or parcel of real
12        property existing at the time tax increment financing
13        was adopted, minus the total current homestead
14        exemptions under Article 15 of the Property Tax Code in
15        the redevelopment project area shall be allocated to
16        and when collected shall be paid by the county
17        collector to the respective affected taxing districts
18        in the manner required by law in the absence of the
19        adoption of tax increment allocation financing.
20        (2) That portion, if any, of such taxes which is
21        attributable to the increase in the current equalized
22        assessed valuation of each taxable lot, block, tract,
23        or parcel of real property in the redevelopment project
24        area, over and above the initial equalized assessed
25        value of each property existing at the time tax
26        increment financing was adopted, minus the total

 

 

10000SB0001sam001- 109 -LRB100 06371 NHT 24204 a

1        current homestead exemptions pertaining to each piece
2        of property provided by Article 15 of the Property Tax
3        Code in the redevelopment project area, shall be
4        allocated to and when collected shall be paid to the
5        municipal Treasurer, who shall deposit said taxes into
6        a special fund called the special tax allocation fund
7        of the municipality for the purpose of paying
8        redevelopment project costs and obligations incurred
9        in the payment thereof.
10        The municipality may pledge in the ordinance the funds
11    in and to be deposited in the special tax allocation fund
12    for the payment of such costs and obligations. No part of
13    the current equalized assessed valuation of each property
14    in the redevelopment project area attributable to any
15    increase above the total initial equalized assessed value,
16    or the total initial equalized assessed value as adjusted,
17    of such properties shall be used in calculating the general
18    State school aid formula, provided for in Section 18-8 of
19    the School Code, or the evidence-based funding formula,
20    provided for in Section 18-8.15 of the School Code, until
21    such time as all redevelopment project costs have been paid
22    as provided for in this Section.
23        Whenever a municipality issues bonds for the purpose of
24    financing redevelopment project costs, such municipality
25    may provide by ordinance for the appointment of a trustee,
26    which may be any trust company within the State, and for

 

 

10000SB0001sam001- 110 -LRB100 06371 NHT 24204 a

1    the establishment of such funds or accounts to be
2    maintained by such trustee as the municipality shall deem
3    necessary to provide for the security and payment of the
4    bonds. If such municipality provides for the appointment of
5    a trustee, such trustee shall be considered the assignee of
6    any payments assigned by the municipality pursuant to such
7    ordinance and this Section. Any amounts paid to such
8    trustee as assignee shall be deposited in the funds or
9    accounts established pursuant to such trust agreement, and
10    shall be held by such trustee in trust for the benefit of
11    the holders of the bonds, and such holders shall have a
12    lien on and a security interest in such funds or accounts
13    so long as the bonds remain outstanding and unpaid. Upon
14    retirement of the bonds, the trustee shall pay over any
15    excess amounts held to the municipality for deposit in the
16    special tax allocation fund.
17        When such redevelopment projects costs, including
18    without limitation all municipal obligations financing
19    redevelopment project costs incurred under this Division,
20    have been paid, all surplus funds then remaining in the
21    special tax allocation fund shall be distributed by being
22    paid by the municipal treasurer to the Department of
23    Revenue, the municipality and the county collector; first
24    to the Department of Revenue and the municipality in direct
25    proportion to the tax incremental revenue received from the
26    State and the municipality, but not to exceed the total

 

 

10000SB0001sam001- 111 -LRB100 06371 NHT 24204 a

1    incremental revenue received from the State or the
2    municipality less any annual surplus distribution of
3    incremental revenue previously made; with any remaining
4    funds to be paid to the County Collector who shall
5    immediately thereafter pay said funds to the taxing
6    districts in the redevelopment project area in the same
7    manner and proportion as the most recent distribution by
8    the county collector to the affected districts of real
9    property taxes from real property in the redevelopment
10    project area.
11        Upon the payment of all redevelopment project costs,
12    the retirement of obligations, the distribution of any
13    excess monies pursuant to this Section, and final closing
14    of the books and records of the redevelopment project area,
15    the municipality shall adopt an ordinance dissolving the
16    special tax allocation fund for the redevelopment project
17    area and terminating the designation of the redevelopment
18    project area as a redevelopment project area. Title to real
19    or personal property and public improvements acquired by or
20    for the municipality as a result of the redevelopment
21    project and plan shall vest in the municipality when
22    acquired and shall continue to be held by the municipality
23    after the redevelopment project area has been terminated.
24    Municipalities shall notify affected taxing districts
25    prior to November 1 if the redevelopment project area is to
26    be terminated by December 31 of that same year. If a

 

 

10000SB0001sam001- 112 -LRB100 06371 NHT 24204 a

1    municipality extends estimated dates of completion of a
2    redevelopment project and retirement of obligations to
3    finance a redevelopment project, as allowed by this
4    amendatory Act of 1993, that extension shall not extend the
5    property tax increment allocation financing authorized by
6    this Section. Thereafter the rates of the taxing districts
7    shall be extended and taxes levied, collected and
8    distributed in the manner applicable in the absence of the
9    adoption of tax increment allocation financing.
10        If a municipality with a population of 1,000,000 or
11    more has adopted by ordinance tax increment allocation
12    financing for a redevelopment project area located in a
13    transit facility improvement area established pursuant to
14    Section 11-74.4-3.3, for each year after the effective date
15    of the ordinance until redevelopment project costs and all
16    municipal obligations financing redevelopment project
17    costs have been paid, the ad valorem taxes, if any, arising
18    from the levies upon the taxable real property in that
19    redevelopment project area by taxing districts and tax
20    rates determined in the manner provided in paragraph (c) of
21    Section 11-74.4-9 shall be divided as follows:
22            (1) That portion of the taxes levied upon each
23        taxable lot, block, tract or parcel of real property
24        which is attributable to the lower of (i) the current
25        equalized assessed value or "current equalized
26        assessed value as adjusted" or (ii) the initial

 

 

10000SB0001sam001- 113 -LRB100 06371 NHT 24204 a

1        equalized assessed value of each such taxable lot,
2        block, tract, or parcel of real property existing at
3        the time tax increment financing was adopted, minus the
4        total current homestead exemptions under Article 15 of
5        the Property Tax Code in the redevelopment project area
6        shall be allocated to and when collected shall be paid
7        by the county collector to the respective affected
8        taxing districts in the manner required by law in the
9        absence of the adoption of tax increment allocation
10        financing.
11            (2) That portion, if any, of such taxes which is
12        attributable to the increase in the current equalized
13        assessed valuation of each taxable lot, block, tract,
14        or parcel of real property in the redevelopment project
15        area, over and above the initial equalized assessed
16        value of each property existing at the time tax
17        increment financing was adopted, minus the total
18        current homestead exemptions pertaining to each piece
19        of property provided by Article 15 of the Property Tax
20        Code in the redevelopment project area, shall be
21        allocated to and when collected shall be paid by the
22        county collector as follows:
23                (A) First, that portion which would be payable
24            to a school district whose boundaries are
25            coterminous with such municipality in the absence
26            of the adoption of tax increment allocation

 

 

10000SB0001sam001- 114 -LRB100 06371 NHT 24204 a

1            financing, shall be paid to such school district in
2            the manner required by law in the absence of the
3            adoption of tax increment allocation financing;
4            then
5                (B) 80% of the remaining portion shall be paid
6            to the municipal Treasurer, who shall deposit said
7            taxes into a special fund called the special tax
8            allocation fund of the municipality for the
9            purpose of paying redevelopment project costs and
10            obligations incurred in the payment thereof; and
11            then
12                (C) 20% of the remaining portion shall be paid
13            to the respective affected taxing districts, other
14            than the school district described in clause (a)
15            above, in the manner required by law in the absence
16            of the adoption of tax increment allocation
17            financing.
18    Nothing in this Section shall be construed as relieving
19property in such redevelopment project areas from being
20assessed as provided in the Property Tax Code or as relieving
21owners of such property from paying a uniform rate of taxes, as
22required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
25    (65 ILCS 5/11-74.6-35)

 

 

10000SB0001sam001- 115 -LRB100 06371 NHT 24204 a

1    Sec. 11-74.6-35. Ordinance for tax increment allocation
2financing.
3    (a) A municipality, at the time a redevelopment project
4area is designated, may adopt tax increment allocation
5financing by passing an ordinance providing that the ad valorem
6taxes, if any, arising from the levies upon taxable real
7property within the redevelopment project area by taxing
8districts and tax rates determined in the manner provided in
9subsection (b) of Section 11-74.6-40 each year after the
10effective date of the ordinance until redevelopment project
11costs and all municipal obligations financing redevelopment
12project costs incurred under this Act have been paid shall be
13divided as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract or parcel of real property that is
16    attributable to the lower of the current equalized assessed
17    value or the initial equalized assessed value or the
18    updated initial equalized assessed value of each taxable
19    lot, block, tract or parcel of real property in the
20    redevelopment project area shall be allocated to and when
21    collected shall be paid by the county collector to the
22    respective affected taxing districts in the manner
23    required by law without regard to the adoption of tax
24    increment allocation financing.
25        (2) That portion, if any, of those taxes that is
26    attributable to the increase in the current equalized

 

 

10000SB0001sam001- 116 -LRB100 06371 NHT 24204 a

1    assessed value of each taxable lot, block, tract or parcel
2    of real property in the redevelopment project area, over
3    and above the initial equalized assessed value or the
4    updated initial equalized assessed value of each property
5    in the project area, shall be allocated to and when
6    collected shall be paid by the county collector to the
7    municipal treasurer who shall deposit that portion of those
8    taxes into a special fund called the special tax allocation
9    fund of the municipality for the purpose of paying
10    redevelopment project costs and obligations incurred in
11    the payment of those costs and obligations. In any county
12    with a population of 3,000,000 or more that has adopted a
13    procedure for collecting taxes that provides for one or
14    more of the installments of the taxes to be billed and
15    collected on an estimated basis, the municipal treasurer
16    shall be paid for deposit in the special tax allocation
17    fund of the municipality, from the taxes collected from
18    estimated bills issued for property in the redevelopment
19    project area, the difference between the amount actually
20    collected from each taxable lot, block, tract, or parcel of
21    real property within the redevelopment project area and an
22    amount determined by multiplying the rate at which taxes
23    were last extended against the taxable lot, block, track,
24    or parcel of real property in the manner provided in
25    subsection (b) of Section 11-74.6-40 by the initial
26    equalized assessed value or the updated initial equalized

 

 

10000SB0001sam001- 117 -LRB100 06371 NHT 24204 a

1    assessed value of the property divided by the number of
2    installments in which real estate taxes are billed and
3    collected within the county, provided that the payments on
4    or before December 31, 1999 to a municipal treasurer shall
5    be made only if each of the following conditions are met:
6            (A) The total equalized assessed value of the
7        redevelopment project area as last determined was not
8        less than 175% of the total initial equalized assessed
9        value.
10            (B) Not more than 50% of the total equalized
11        assessed value of the redevelopment project area as
12        last determined is attributable to a piece of property
13        assigned a single real estate index number.
14            (C) The municipal clerk has certified to the county
15        clerk that the municipality has issued its obligations
16        to which there has been pledged the incremental
17        property taxes of the redevelopment project area or
18        taxes levied and collected on any or all property in
19        the municipality or the full faith and credit of the
20        municipality to pay or secure payment for all or a
21        portion of the redevelopment project costs. The
22        certification shall be filed annually no later than
23        September 1 for the estimated taxes to be distributed
24        in the following year.
25    The conditions of paragraphs (A) through (C) do not apply
26after December 31, 1999 to payments to a municipal treasurer

 

 

10000SB0001sam001- 118 -LRB100 06371 NHT 24204 a

1made by a county with 3,000,000 or more inhabitants that has
2adopted an estimated billing procedure for collecting taxes. If
3a county that has adopted the estimated billing procedure makes
4an erroneous overpayment of tax revenue to the municipal
5treasurer, then the county may seek a refund of that
6overpayment. The county shall send the municipal treasurer a
7notice of liability for the overpayment on or before the
8mailing date of the next real estate tax bill within the
9county. The refund shall be limited to the amount of the
10overpayment.
11    (b) It is the intent of this Act that a municipality's own
12ad valorem tax arising from levies on taxable real property be
13included in the determination of incremental revenue in the
14manner provided in paragraph (b) of Section 11-74.6-40.
15    (c) If a municipality has adopted tax increment allocation
16financing for a redevelopment project area by ordinance and the
17county clerk thereafter certifies the total initial equalized
18assessed value or the total updated initial equalized assessed
19value of the taxable real property within such redevelopment
20project area in the manner provided in paragraph (a) or (b) of
21Section 11-74.6-40, each year after the date of the
22certification of the total initial equalized assessed value or
23the total updated initial equalized assessed value until
24redevelopment project costs and all municipal obligations
25financing redevelopment project costs have been paid, the ad
26valorem taxes, if any, arising from the levies upon the taxable

 

 

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1real property in the redevelopment project area by taxing
2districts and tax rates determined in the manner provided in
3paragraph (b) of Section 11-74.6-40 shall be divided as
4follows:
5        (1) That portion of the taxes levied upon each taxable
6    lot, block, tract or parcel of real property that is
7    attributable to the lower of the current equalized assessed
8    value or the initial equalized assessed value, or the
9    updated initial equalized assessed value of each parcel if
10    the updated initial equalized assessed value of that parcel
11    has been certified in accordance with Section 11-74.6-40,
12    whichever has been most recently certified, of each taxable
13    lot, block, tract, or parcel of real property existing at
14    the time tax increment allocation financing was adopted in
15    the redevelopment project area, shall be allocated to and
16    when collected shall be paid by the county collector to the
17    respective affected taxing districts in the manner
18    required by law without regard to the adoption of tax
19    increment allocation financing.
20        (2) That portion, if any, of those taxes that is
21    attributable to the increase in the current equalized
22    assessed value of each taxable lot, block, tract, or parcel
23    of real property in the redevelopment project area, over
24    and above the initial equalized assessed value of each
25    property existing at the time tax increment allocation
26    financing was adopted in the redevelopment project area, or

 

 

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1    the updated initial equalized assessed value of each parcel
2    if the updated initial equalized assessed value of that
3    parcel has been certified in accordance with Section
4    11-74.6-40, shall be allocated to and when collected shall
5    be paid to the municipal treasurer, who shall deposit those
6    taxes into a special fund called the special tax allocation
7    fund of the municipality for the purpose of paying
8    redevelopment project costs and obligations incurred in
9    the payment thereof.
10    (d) The municipality may pledge in the ordinance the funds
11in and to be deposited in the special tax allocation fund for
12the payment of redevelopment project costs and obligations. No
13part of the current equalized assessed value of each property
14in the redevelopment project area attributable to any increase
15above the total initial equalized assessed value or the total
16initial updated equalized assessed value of the property, shall
17be used in calculating the general General State aid formula
18School Aid Formula, provided for in Section 18-8 of the School
19Code, or the evidence-based funding formula, provided for in
20Section 18-8.15 of the School Code, until all redevelopment
21project costs have been paid as provided for in this Section.
22    Whenever a municipality issues bonds for the purpose of
23financing redevelopment project costs, that municipality may
24provide by ordinance for the appointment of a trustee, which
25may be any trust company within the State, and for the
26establishment of any funds or accounts to be maintained by that

 

 

10000SB0001sam001- 121 -LRB100 06371 NHT 24204 a

1trustee, as the municipality deems necessary to provide for the
2security and payment of the bonds. If the municipality provides
3for the appointment of a trustee, the trustee shall be
4considered the assignee of any payments assigned by the
5municipality under that ordinance and this Section. Any amounts
6paid to the trustee as assignee shall be deposited into the
7funds or accounts established under the trust agreement, and
8shall be held by the trustee in trust for the benefit of the
9holders of the bonds. The holders of those bonds shall have a
10lien on and a security interest in those funds or accounts
11while the bonds remain outstanding and unpaid. Upon retirement
12of the bonds, the trustee shall pay over any excess amounts
13held to the municipality for deposit in the special tax
14allocation fund.
15    When the redevelopment projects costs, including without
16limitation all municipal obligations financing redevelopment
17project costs incurred under this Law, have been paid, all
18surplus funds then remaining in the special tax allocation fund
19shall be distributed by being paid by the municipal treasurer
20to the municipality and the county collector; first to the
21municipality in direct proportion to the tax incremental
22revenue received from the municipality, but not to exceed the
23total incremental revenue received from the municipality,
24minus any annual surplus distribution of incremental revenue
25previously made. Any remaining funds shall be paid to the
26county collector who shall immediately distribute that payment

 

 

10000SB0001sam001- 122 -LRB100 06371 NHT 24204 a

1to the taxing districts in the redevelopment project area in
2the same manner and proportion as the most recent distribution
3by the county collector to the affected districts of real
4property taxes from real property situated in the redevelopment
5project area.
6    Upon the payment of all redevelopment project costs,
7retirement of obligations and the distribution of any excess
8moneys under this Section, the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10redevelopment project area and terminating the designation of
11the redevelopment project area as a redevelopment project area.
12Thereafter the tax levies of taxing districts shall be
13extended, collected and distributed in the same manner
14applicable before the adoption of tax increment allocation
15financing. Municipality shall notify affected taxing districts
16prior to November if the redevelopment project area is to be
17terminated by December 31 of that same year.
18    Nothing in this Section shall be construed as relieving
19property in a redevelopment project area from being assessed as
20provided in the Property Tax Code or as relieving owners of
21that property from paying a uniform rate of taxes, as required
22by Section 4 of Article IX of the Illinois Constitution.
23(Source: P.A. 91-474, eff. 11-1-99.)
 
24    Section 40. The Economic Development Project Area Tax
25Increment Allocation Act of 1995 is amended by changing Section

 

 

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150 as follows:
 
2    (65 ILCS 110/50)
3    Sec. 50. Special tax allocation fund.
4    (a) If a county clerk has certified the "total initial
5equalized assessed value" of the taxable real property within
6an economic development project area in the manner provided in
7Section 45, each year after the date of the certification by
8the county clerk of the "total initial equalized assessed
9value", until economic development project costs and all
10municipal obligations financing economic development project
11costs have been paid, the ad valorem taxes, if any, arising
12from the levies upon the taxable real property in the economic
13development project area by taxing districts and tax rates
14determined in the manner provided in subsection (b) of Section
1545 shall be divided as follows:
16        (1) That portion of the taxes levied upon each taxable
17    lot, block, tract, or parcel of real property that is
18    attributable to the lower of the current equalized assessed
19    value or the initial equalized assessed value of each
20    taxable lot, block, tract, or parcel of real property
21    existing at the time tax increment financing was adopted
22    shall be allocated to (and when collected shall be paid by
23    the county collector to) the respective affected taxing
24    districts in the manner required by law in the absence of
25    the adoption of tax increment allocation financing.

 

 

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1        (2) That portion, if any, of the taxes that is
2    attributable to the increase in the current equalized
3    assessed valuation of each taxable lot, block, tract, or
4    parcel of real property in the economic development project
5    area, over and above the initial equalized assessed value
6    of each property existing at the time tax increment
7    financing was adopted, shall be allocated to (and when
8    collected shall be paid to) the municipal treasurer, who
9    shall deposit the taxes into a special fund (called the
10    special tax allocation fund of the municipality) for the
11    purpose of paying economic development project costs and
12    obligations incurred in the payment of those costs.
13    (b) The municipality, by an ordinance adopting tax
14increment allocation financing, may pledge the monies in and to
15be deposited into the special tax allocation fund for the
16payment of obligations issued under this Act and for the
17payment of economic development project costs. No part of the
18current equalized assessed valuation of each property in the
19economic development project area attributable to any increase
20above the total initial equalized assessed value of those
21properties shall be used in calculating the general State
22school aid formula under Section 18-8 of the School Code or the
23evidence-based funding formula under Section 18-8.15 of the
24School Code, until all economic development projects costs have
25been paid as provided for in this Section.
26    (c) When the economic development projects costs,

 

 

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1including without limitation all municipal obligations
2financing economic development project costs incurred under
3this Act, have been paid, all surplus monies then remaining in
4the special tax allocation fund shall be distributed by being
5paid by the municipal treasurer to the county collector, who
6shall immediately pay the monies to the taxing districts having
7taxable property in the economic development project area in
8the same manner and proportion as the most recent distribution
9by the county collector to those taxing districts of real
10property taxes from real property in the economic development
11project area.
12    (d) Upon the payment of all economic development project
13costs, retirement of obligations, and distribution of any
14excess monies under this Section and not later than 23 years
15from the date of the adoption of the ordinance establishing the
16economic development project area, the municipality shall
17adopt an ordinance dissolving the special tax allocation fund
18for the economic development project area and terminating the
19designation of the economic development project area as an
20economic development project area. Thereafter, the rates of the
21taxing districts shall be extended and taxes shall be levied,
22collected, and distributed in the manner applicable in the
23absence of the adoption of tax increment allocation financing.
24    (e) Nothing in this Section shall be construed as relieving
25property in the economic development project areas from being
26assessed as provided in the Property Tax Code or as relieving

 

 

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1owners or lessees of that property from paying a uniform rate
2of taxes as required by Section 4 of Article IX of the Illinois
3Constitution.
4(Source: P.A. 98-463, eff. 8-16-13.)
 
5    Section 45. The School Code is amended by changing Sections
61A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1D-1, 1E-20, 1F-20, 1F-62,
71H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b, 2-3.84,
82-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a, 10-22.20, 10-29,
911E-135, 13A-8, 13B-20.20, 13B-45, 13B-50, 13B-50.10,
1013B-50.15, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1, 17-1.2,
1117-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10, 18-9, 18-12,
1226-16, 27-8.1, 27A-9, 27A-11, 34-2.3, 34-18, 34-18.30, and
1334-43.1 and by adding Sections 17-3.6 and 18-8.15 as follows:
 
14    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
15    Sec. 1A-8. Powers of the Board in Assisting Districts
16Deemed in Financial Difficulties. To promote the financial
17integrity of school districts, the State Board of Education
18shall be provided the necessary powers to promote sound
19financial management and continue operation of the public
20schools.
21    (a) The State Superintendent of Education may require a
22school district, including any district subject to Article 34A
23of this Code, to share financial information relevant to a
24proper investigation of the district's financial condition and

 

 

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1the delivery of appropriate State financial, technical, and
2consulting services to the district if the district (i) has
3been designated, through the State Board of Education's School
4District Financial Profile System, as on financial warning or
5financial watch status, (ii) has failed to file an annual
6financial report, annual budget, deficit reduction plan, or
7other financial information as required by law, (iii) has been
8identified, through the district's annual audit or other
9financial and management information, as in serious financial
10difficulty in the current or next school year, or (iv) is
11determined to be likely to fail to fully meet any regularly
12scheduled, payroll-period obligations when due or any debt
13service payments when due or both. In addition to financial,
14technical, and consulting services provided by the State Board
15of Education, at the request of a school district, the State
16Superintendent may provide for an independent financial
17consultant to assist the district review its financial
18condition and options.
19    (b) The State Board of Education, after proper
20investigation of a district's financial condition, may certify
21that a district, including any district subject to Article 34A,
22is in financial difficulty when any of the following conditions
23occur:
24        (1) The district has issued school or teacher orders
25    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
26    of this Code.

 

 

10000SB0001sam001- 128 -LRB100 06371 NHT 24204 a

1        (2) The district has issued tax anticipation warrants
2    or tax anticipation notes in anticipation of a second
3    year's taxes when warrants or notes in anticipation of
4    current year taxes are still outstanding, as authorized by
5    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
6    issued short-term debt against 2 future revenue sources,
7    such as, but not limited to, tax anticipation warrants and
8    general State aid or evidence-based funding Aid
9    certificates or tax anticipation warrants and revenue
10    anticipation notes.
11        (3) The district has for 2 consecutive years shown an
12    excess of expenditures and other financing uses over
13    revenues and other financing sources and beginning fund
14    balances on its annual financial report for the aggregate
15    totals of the Educational, Operations and Maintenance,
16    Transportation, and Working Cash Funds.
17        (4) The district refuses to provide financial
18    information or cooperate with the State Superintendent in
19    an investigation of the district's financial condition.
20        (5) The district is likely to fail to fully meet any
21    regularly scheduled, payroll-period obligations when due
22    or any debt service payments when due or both.
23    No school district shall be certified by the State Board of
24Education to be in financial difficulty solely by reason of any
25of the above circumstances arising as a result of (i) the
26failure of the county to make any distribution of property tax

 

 

10000SB0001sam001- 129 -LRB100 06371 NHT 24204 a

1money due the district at the time such distribution is due or
2(ii) the failure of this State to make timely payments of
3general State aid, evidence-based funding, or any of the
4mandated categoricals; or if the district clearly demonstrates
5to the satisfaction of the State Board of Education at the time
6of its determination that such condition no longer exists. If
7the State Board of Education certifies that a district in a
8city with 500,000 inhabitants or more is in financial
9difficulty, the State Board shall so notify the Governor and
10the Mayor of the city in which the district is located. The
11State Board of Education may require school districts certified
12in financial difficulty, except those districts subject to
13Article 34A, to develop, adopt and submit a financial plan
14within 45 days after certification of financial difficulty. The
15financial plan shall be developed according to guidelines
16presented to the district by the State Board of Education
17within 14 days of certification. Such guidelines shall address
18the specific nature of each district's financial difficulties.
19Any proposed budget of the district shall be consistent with
20the financial plan submitted to and approved by the State Board
21of Education.
22    A district certified to be in financial difficulty, other
23than a district subject to Article 34A, shall report to the
24State Board of Education at such times and in such manner as
25the State Board may direct, concerning the district's
26compliance with each financial plan. The State Board may review

 

 

10000SB0001sam001- 130 -LRB100 06371 NHT 24204 a

1the district's operations, obtain budgetary data and financial
2statements, require the district to produce reports, and have
3access to any other information in the possession of the
4district that it deems relevant. The State Board may issue
5recommendations or directives within its powers to the district
6to assist in compliance with the financial plan. The district
7shall produce such budgetary data, financial statements,
8reports and other information and comply with such directives.
9If the State Board of Education determines that a district has
10failed to comply with its financial plan, the State Board of
11Education may rescind approval of the plan and appoint a
12Financial Oversight Panel for the district as provided in
13Section 1B-4. This action shall be taken only after the
14district has been given notice and an opportunity to appear
15before the State Board of Education to discuss its failure to
16comply with its financial plan.
17    No bonds, notes, teachers orders, tax anticipation
18warrants or other evidences of indebtedness shall be issued or
19sold by a school district or be legally binding upon or
20enforceable against a local board of education of a district
21certified to be in financial difficulty unless and until the
22financial plan required under this Section has been approved by
23the State Board of Education.
24    Any financial profile compiled and distributed by the State
25Board of Education in Fiscal Year 2009 or any fiscal year
26thereafter shall incorporate such adjustments as may be needed

 

 

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1in the profile scores to reflect the financial effects of the
2inability or refusal of the State of Illinois to make timely
3disbursements of any general State aid, evidence-based
4funding, or mandated categorical aid payments due school
5districts or to fully reimburse school districts for mandated
6categorical programs pursuant to reimbursement formulas
7provided in this School Code.
8(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
997-429, eff. 8-16-11.)
 
10    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
11    Sec. 1B-5. When a petition for emergency financial
12assistance for a school district is allowed by the State Board
13under Section 1B-4, the State Superintendent shall within 10
14days thereafter appoint 3 members to serve at the State
15Superintendent's pleasure on a Financial Oversight Panel for
16the district. The State Superintendent shall designate one of
17the members of the Panel to serve as its Chairman. In the event
18of vacancy or resignation the State Superintendent shall
19appoint a successor within 10 days of receiving notice thereof.
20    Members of the Panel shall be selected primarily on the
21basis of their experience and education in financial
22management, with consideration given to persons knowledgeable
23in education finance. A member of the Panel may not be a board
24member or employee of the district for which the Panel is
25constituted, nor may a member have a direct financial interest

 

 

10000SB0001sam001- 132 -LRB100 06371 NHT 24204 a

1in that district.
2    Panel members shall serve without compensation, but may be
3reimbursed for travel and other necessary expenses incurred in
4the performance of their official duties by the State Board.
5The amount reimbursed Panel members for their expenses shall be
6charged to the school district as part of any emergency
7financial assistance and incorporated as a part of the terms
8and conditions for repayment of such assistance or shall be
9deducted from the district's general State aid or
10evidence-based funding as provided in Section 1B-8.
11    The first meeting of the Panel shall be held at the call of
12the Chairman. The Panel may elect such other officers as it
13deems appropriate. The Panel shall prescribe the times and
14places for its meetings and the manner in which regular and
15special meetings may be called, and shall comply with the Open
16Meetings Act.
17    Two members of the Panel shall constitute a quorum, and the
18affirmative vote of 2 members shall be necessary for any
19decision or action to be taken by the Panel.
20    The Panel and the State Superintendent shall cooperate with
21each other in the exercise of their respective powers. The
22Panel shall report not later than September 1 annually to the
23State Board and the State Superintendent with respect to its
24activities and the condition of the school district for the
25previous fiscal year.
26    Any Financial Oversight Panel established under this

 

 

10000SB0001sam001- 133 -LRB100 06371 NHT 24204 a

1Article shall remain in existence for not less than 3 years nor
2more than 10 years from the date the State Board grants the
3petition under Section 1B-4. If after 3 years the school
4district has repaid all of its obligations resulting from
5emergency State financial assistance provided under this
6Article and has improved its financial situation, the board of
7education may, not more frequently than once in any 12 month
8period, petition the State Board to dissolve the Financial
9Oversight Panel, terminate the oversight responsibility, and
10remove the district's certification under Section 1A-8 as a
11district in financial difficulty. In acting on such a petition
12the State Board shall give additional weight to the
13recommendations of the State Superintendent and the Financial
14Oversight Panel.
15(Source: P.A. 88-618, eff. 9-9-94.)
 
16    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
17    Sec. 1B-6. General powers. The purpose of the Financial
18Oversight Panel shall be to exercise financial control over the
19board of education, and, when approved by the State Board and
20the State Superintendent of Education, to furnish financial
21assistance so that the board can provide public education
22within the board's jurisdiction while permitting the board to
23meet its obligations to its creditors and the holders of its
24notes and bonds. Except as expressly limited by this Article,
25the Panel shall have all powers necessary to meet its

 

 

10000SB0001sam001- 134 -LRB100 06371 NHT 24204 a

1responsibilities and to carry out its purposes and the purposes
2of this Article, including, but not limited to, the following
3powers:
4    (a) to sue and be sued;
5    (b) to provide for its organization and internal
6management;
7    (c) to appoint a Financial Administrator to serve as the
8chief executive officer of the Panel. The Financial
9Administrator may be an individual, partnership, corporation,
10including an accounting firm, or other entity determined by the
11Panel to be qualified to serve; and to appoint other officers,
12agents, and employees of the Panel, define their duties and
13qualifications and fix their compensation and employee
14benefits;
15    (d) to approve the local board of education appointments to
16the positions of treasurer in a Class I county school unit and
17in each school district which forms a part of a Class II county
18school unit but which no longer is subject to the jurisdiction
19and authority of a township treasurer or trustees of schools of
20a township because the district has withdrawn from the
21jurisdiction and authority of the township treasurer and the
22trustees of schools of the township or because those offices
23have been abolished as provided in subsection (b) or (c) of
24Section 5-1, and chief school business official, if such
25official is not the superintendent of the district. Either the
26board or the Panel may remove such treasurer or chief school

 

 

10000SB0001sam001- 135 -LRB100 06371 NHT 24204 a

1business official;
2    (e) to approve any and all bonds, notes, teachers orders,
3tax anticipation warrants, and other evidences of indebtedness
4prior to issuance or sale by the school district; and
5notwithstanding any other provision of The School Code, as now
6or hereafter amended, no bonds, notes, teachers orders, tax
7anticipation warrants or other evidences of indebtedness shall
8be issued or sold by the school district or be legally binding
9upon or enforceable against the local board of education unless
10and until the approval of the Panel has been received;
11    (f) to approve all property tax levies of the school
12district and require adjustments thereto as the Panel deems
13necessary or advisable;
14    (g) to require and approve a school district financial
15plan;
16    (h) to approve and require revisions of the school district
17budget;
18    (i) to approve all contracts and other obligations as the
19Panel deems necessary and appropriate;
20    (j) to authorize emergency State financial assistance,
21including requirements regarding the terms and conditions of
22repayment of such assistance, and to require the board of
23education to levy a separate local property tax, subject to the
24limitations of Section 1B-8, sufficient to repay such
25assistance consistent with the terms and conditions of
26repayment and the district's approved financial plan and

 

 

10000SB0001sam001- 136 -LRB100 06371 NHT 24204 a

1budget;
2    (k) to request the regional superintendent to make
3appointments to fill all vacancies on the local school board as
4provided in Section 10-10;
5    (l) to recommend dissolution or reorganization of the
6school district to the General Assembly if in the Panel's
7judgment the circumstances so require;
8    (m) to direct a phased reduction in the oversight
9responsibilities of the Financial Administrator and of the
10Panel as the circumstances permit;
11    (n) to determine the amount of emergency State financial
12assistance to be made available to the school district, and to
13establish an operating budget for the Panel to be supported by
14funds available from such assistance, with the assistance and
15the budget required to be approved by the State Superintendent;
16    (o) to procure insurance against any loss in such amounts
17and from such insurers as it deems necessary;
18    (p) to engage the services of consultants for rendering
19professional and technical assistance and advice on matters
20within the Panel's power;
21    (q) to contract for and to accept any gifts, grants or
22loans of funds or property or financial or other aid in any
23form from the federal government, State government, unit of
24local government, school district or any agency or
25instrumentality thereof, or from any other private or public
26source, and to comply with the terms and conditions thereof;

 

 

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1    (r) to pay the expenses of its operations based on the
2Panel's budget as approved by the State Superintendent from
3emergency financial assistance funds available to the district
4or from deductions from the district's general State aid or
5evidence-based funding;
6    (s) to do any and all things necessary or convenient to
7carry out its purposes and exercise the powers given to the
8Panel by this Article; and
9    (t) to recommend the creation of a school finance authority
10pursuant to Article 1F of this Code.
11(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
12    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
13    Sec. 1B-7. Financial Administrator; Powers and Duties. The
14Financial Administrator appointed by the Financial Oversight
15Panel shall serve as the Panel's chief executive officer. The
16Financial Administrator shall exercise the powers and duties
17required by the Panel, including but not limited to the
18following:
19    (a) to provide guidance and recommendations to the local
20board and officials of the school district in developing the
21district's financial plan and budget prior to board action;
22    (b) to direct the local board to reorganize its financial
23accounts, budgetary systems, and internal accounting and
24financial controls, in whatever manner the Panel deems
25appropriate to achieve greater financial responsibility and to

 

 

10000SB0001sam001- 138 -LRB100 06371 NHT 24204 a

1reduce financial inefficiency, and to provide technical
2assistance to aid the district in accomplishing the
3reorganization;
4    (c) to make recommendations to the Financial Oversight
5Panel concerning the school district's financial plan and
6budget, and all other matters within the scope of the Panel's
7authority;
8    (d) to prepare and recommend to the Panel a proposal for
9emergency State financial assistance for the district,
10including recommended terms and conditions of repayment, and an
11operations budget for the Panel to be funded from the emergency
12assistance or from deductions from the district's general State
13aid or evidence-based funding;
14    (e) to require the local board to prepare and submit
15preliminary staffing and budgetary analyses annually prior to
16February 1 in such manner and form as the Financial
17Administrator shall prescribe; and
18    (f) subject to the direction of the Panel, to do all other
19things necessary or convenient to carry out its purposes and
20exercise the powers given to the Panel under this Article.
21(Source: P.A. 88-618, eff. 9-9-94.)
 
22    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
23    Sec. 1B-8. There is created in the State Treasury a special
24fund to be known as the School District Emergency Financial
25Assistance Fund (the "Fund"). The School District Emergency

 

 

10000SB0001sam001- 139 -LRB100 06371 NHT 24204 a

1Financial Assistance Fund shall consist of appropriations,
2loan repayments, grants from the federal government, and
3donations from any public or private source. Moneys in the Fund
4may be appropriated only to the Illinois Finance Authority and
5the State Board for those purposes authorized under this
6Article and Articles 1F and 1H of this Code. The appropriation
7may be allocated and expended by the State Board for
8contractual services to provide technical assistance or
9consultation to school districts to assess their financial
10condition and to Financial Oversight Panels that petition for
11emergency financial assistance grants. The Illinois Finance
12Authority may provide loans to school districts which are the
13subject of an approved petition for emergency financial
14assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
15Neither the State Board of Education nor the Illinois Finance
16Authority may collect any fees for providing these services.
17    From the amount allocated to each such school district
18under this Article the State Board shall identify a sum
19sufficient to cover all approved costs of the Financial
20Oversight Panel established for the respective school
21district. If the State Board and State Superintendent of
22Education have not approved emergency financial assistance in
23conjunction with the appointment of a Financial Oversight
24Panel, the Panel's approved costs shall be paid from deductions
25from the district's general State aid or evidence-based
26funding.

 

 

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1    The Financial Oversight Panel may prepare and file with the
2State Superintendent a proposal for emergency financial
3assistance for the school district and for its operations
4budget. No expenditures from the Fund shall be authorized by
5the State Superintendent until he or she has approved the
6request of the Panel, either as submitted or in such lesser
7amount determined by the State Superintendent.
8    The maximum amount of an emergency financial assistance
9loan which may be allocated to any school district under this
10Article, including moneys necessary for the operations of the
11Panel, shall not exceed $4,000 times the number of pupils
12enrolled in the school district during the school year ending
13June 30 prior to the date of approval by the State Board of the
14petition for emergency financial assistance, as certified to
15the local board and the Panel by the State Superintendent. An
16emergency financial assistance grant shall not exceed $1,000
17times the number of such pupils. A district may receive both a
18loan and a grant.
19    The payment of an emergency State financial assistance
20grant or loan shall be subject to appropriation by the General
21Assembly. Payment of the emergency State financial assistance
22loan is subject to the applicable provisions of the Illinois
23Finance Authority Act. Emergency State financial assistance
24allocated and paid to a school district under this Article may
25be applied to any fund or funds from which the local board of
26education of that district is authorized to make expenditures

 

 

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1by law.
2    Any emergency financial assistance grant proposed by the
3Financial Oversight Panel and approved by the State
4Superintendent may be paid in its entirety during the initial
5year of the Panel's existence or spread in equal or declining
6amounts over a period of years not to exceed the period of the
7Panel's existence. An emergency financial assistance loan
8proposed by the Financial Oversight Panel and approved by the
9Illinois Finance Authority may be paid in its entirety during
10the initial year of the Panel's existence or spread in equal or
11declining amounts over a period of years not to exceed the
12period of the Panel's existence. All loans made by the Illinois
13Finance Authority for a school district shall be required to be
14repaid, with simple interest over the term of the loan at a
15rate equal to 50% of the one-year Constant Maturity Treasury
16(CMT) yield as last published by the Board of Governors of the
17Federal Reserve System before the date on which the district's
18loan is approved by the Illinois Finance Authority, not later
19than the date the Financial Oversight Panel ceases to exist.
20The Panel shall establish and the Illinois Finance Authority
21shall approve the terms and conditions, including the schedule,
22of repayments. The schedule shall provide for repayments
23commencing July 1 of each year or upon each fiscal year's
24receipt of moneys from a tax levy for emergency financial
25assistance. Repayment shall be incorporated into the annual
26budget of the school district and may be made from any fund or

 

 

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1funds of the district in which there are moneys available. An
2emergency financial assistance loan to the Panel or district
3shall not be considered part of the calculation of a district's
4debt for purposes of the limitation specified in Section 19-1
5of this Code. Default on repayment is subject to the Illinois
6Grant Funds Recovery Act. When moneys are repaid as provided
7herein they shall not be made available to the local board for
8further use as emergency financial assistance under this
9Article at any time thereafter. All repayments required to be
10made by a school district shall be received by the State Board
11and deposited in the School District Emergency Financial
12Assistance Fund.
13    In establishing the terms and conditions for the repayment
14obligation of the school district the Panel shall annually
15determine whether a separate local property tax levy is
16required. The board of any school district with a tax rate for
17educational purposes for the prior year of less than 120% of
18the maximum rate for educational purposes authorized by Section
1917-2 shall provide for a separate tax levy for emergency
20financial assistance repayment purposes. Such tax levy shall
21not be subject to referendum approval. The amount of the levy
22shall be equal to the amount necessary to meet the annual
23repayment obligations of the district as established by the
24Panel, or 20% of the amount levied for educational purposes for
25the prior year, whichever is less. However, no district shall
26be required to levy the tax if the district's operating tax

 

 

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1rate as determined under Section 18-8, or 18-8.05, or 18-8.15
2exceeds 200% of the district's tax rate for educational
3purposes for the prior year.
4(Source: P.A. 97-429, eff. 8-16-11.)
 
5    (105 ILCS 5/1C-1)
6    Sec. 1C-1. Purpose. The purpose of this Article is to
7permit greater flexibility and efficiency in the distribution
8and use of certain State funds available to local education
9agencies for the improvement of the quality of educational
10services pursuant to locally established priorities.
11    Through fiscal year 2017, this This Article does not apply
12to school districts having a population in excess of 500,000
13inhabitants.
14(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1589-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
16    (105 ILCS 5/1D-1)
17    Sec. 1D-1. Block grant funding.
18    (a) For fiscal year 1996 through fiscal year 2017 and each
19fiscal year thereafter, the State Board of Education shall
20award to a school district having a population exceeding
21500,000 inhabitants a general education block grant and an
22educational services block grant, determined as provided in
23this Section, in lieu of distributing to the district separate
24State funding for the programs described in subsections (b) and

 

 

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1(c). The provisions of this Section, however, do not apply to
2any federal funds that the district is entitled to receive. In
3accordance with Section 2-3.32, all block grants are subject to
4an audit. Therefore, block grant receipts and block grant
5expenditures shall be recorded to the appropriate fund code for
6the designated block grant.
7    (b) The general education block grant shall include the
8following programs: REI Initiative, Summer Bridges, Preschool
9At Risk, K-6 Comprehensive Arts, School Improvement Support,
10Urban Education, Scientific Literacy, Substance Abuse
11Prevention, Second Language Planning, Staff Development,
12Outcomes and Assessment, K-6 Reading Improvement, 7-12
13Continued Reading Improvement, Truants' Optional Education,
14Hispanic Programs, Agriculture Education, Parental Education,
15Prevention Initiative, Report Cards, and Criminal Background
16Investigations. Notwithstanding any other provision of law,
17all amounts paid under the general education block grant from
18State appropriations to a school district in a city having a
19population exceeding 500,000 inhabitants shall be appropriated
20and expended by the board of that district for any of the
21programs included in the block grant or any of the board's
22lawful purposes.
23    (c) The educational services block grant shall include the
24following programs: Regular and Vocational Transportation,
25State Lunch and Free Breakfast Program, Special Education
26(Personnel, Transportation, Orphanage, Private Tuition),

 

 

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1funding for children requiring special education services,
2Summer School, Educational Service Centers, and
3Administrator's Academy. This subsection (c) does not relieve
4the district of its obligation to provide the services required
5under a program that is included within the educational
6services block grant. It is the intention of the General
7Assembly in enacting the provisions of this subsection (c) to
8relieve the district of the administrative burdens that impede
9efficiency and accompany single-program funding. The General
10Assembly encourages the board to pursue mandate waivers
11pursuant to Section 2-3.25g.
12    The funding program included in the educational services
13block grant for funding for children requiring special
14education services in each fiscal year shall be treated in that
15fiscal year as a payment to the school district in respect of
16services provided or costs incurred in the prior fiscal year,
17calculated in each case as provided in this Section. Nothing in
18this Section shall change the nature of payments for any
19program that, apart from this Section, would be or, prior to
20adoption or amendment of this Section, was on the basis of a
21payment in a fiscal year in respect of services provided or
22costs incurred in the prior fiscal year, calculated in each
23case as provided in this Section.
24    (d) For fiscal year 1996 through fiscal year 2017 and each
25fiscal year thereafter, the amount of the district's block
26grants shall be determined as follows: (i) with respect to each

 

 

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1program that is included within each block grant, the district
2shall receive an amount equal to the same percentage of the
3current fiscal year appropriation made for that program as the
4percentage of the appropriation received by the district from
5the 1995 fiscal year appropriation made for that program, and
6(ii) the total amount that is due the district under the block
7grant shall be the aggregate of the amounts that the district
8is entitled to receive for the fiscal year with respect to each
9program that is included within the block grant that the State
10Board of Education shall award the district under this Section
11for that fiscal year. In the case of the Summer Bridges
12program, the amount of the district's block grant shall be
13equal to 44% of the amount of the current fiscal year
14appropriation made for that program.
15    (e) The district is not required to file any application or
16other claim in order to receive the block grants to which it is
17entitled under this Section. The State Board of Education shall
18make payments to the district of amounts due under the
19district's block grants on a schedule determined by the State
20Board of Education.
21    (f) A school district to which this Section applies shall
22report to the State Board of Education on its use of the block
23grants in such form and detail as the State Board of Education
24may specify. In addition, the report must include the following
25description for the district, which must also be reported to
26the General Assembly: block grant allocation and expenditures

 

 

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1by program; population and service levels by program; and
2administrative expenditures by program. The State Board of
3Education shall ensure that the reporting requirements for the
4district are the same as for all other school districts in this
5State.
6    (g) Through fiscal year 2017, this This paragraph provides
7for the treatment of block grants under Article 1C for purposes
8of calculating the amount of block grants for a district under
9this Section. Those block grants under Article 1C are, for this
10purpose, treated as included in the amount of appropriation for
11the various programs set forth in paragraph (b) above. The
12appropriation in each current fiscal year for each block grant
13under Article 1C shall be treated for these purposes as
14appropriations for the individual program included in that
15block grant. The proportion of each block grant so allocated to
16each such program included in it shall be the proportion which
17the appropriation for that program was of all appropriations
18for such purposes now in that block grant, in fiscal 1995.
19    Payments to the school district under this Section with
20respect to each program for which payments to school districts
21generally, as of the date of this amendatory Act of the 92nd
22General Assembly, are on a reimbursement basis shall continue
23to be made to the district on a reimbursement basis, pursuant
24to the provisions of this Code governing those programs.
25    (h) Notwithstanding any other provision of law, any school
26district receiving a block grant under this Section may

 

 

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1classify all or a portion of the funds that it receives in a
2particular fiscal year from any block grant authorized under
3this Code or from general State aid pursuant to Section 18-8.05
4of this Code (other than supplemental general State aid) as
5funds received in connection with any funding program for which
6it is entitled to receive funds from the State in that fiscal
7year (including, without limitation, any funding program
8referred to in subsection (c) of this Section), regardless of
9the source or timing of the receipt. The district may not
10classify more funds as funds received in connection with the
11funding program than the district is entitled to receive in
12that fiscal year for that program. Any classification by a
13district must be made by a resolution of its board of
14education. The resolution must identify the amount of any block
15grant or general State aid to be classified under this
16subsection (h) and must specify the funding program to which
17the funds are to be treated as received in connection
18therewith. This resolution is controlling as to the
19classification of funds referenced therein. A certified copy of
20the resolution must be sent to the State Superintendent of
21Education. The resolution shall still take effect even though a
22copy of the resolution has not been sent to the State
23Superintendent of Education in a timely manner. No
24classification under this subsection (h) by a district shall
25affect the total amount or timing of money the district is
26entitled to receive under this Code. No classification under

 

 

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1this subsection (h) by a district shall in any way relieve the
2district from or affect any requirements that otherwise would
3apply with respect to the block grant as provided in this
4Section, including any accounting of funds by source, reporting
5expenditures by original source and purpose, reporting
6requirements, or requirements of provision of services.
7(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
897-813, eff. 7-13-12.)
 
9    (105 ILCS 5/1E-20)
10    (This Section scheduled to be repealed in accordance with
11105 ILCS 5/1E-165)
12    Sec. 1E-20. Members of Authority; meetings.
13    (a) When a petition for a School Finance Authority is
14allowed by the State Board under Section 1E-15 of this Code,
15the State Superintendent shall within 10 days thereafter
16appoint 5 members to serve on a School Finance Authority for
17the district. Of the initial members, 2 shall be appointed to
18serve a term of 2 years and 3 shall be appointed to serve a term
19of 3 years. Thereafter, each member shall serve for a term of 3
20years and until his or her successor has been appointed. The
21State Superintendent shall designate one of the members of the
22Authority to serve as its Chairperson. In the event of vacancy
23or resignation, the State Superintendent shall, within 10 days
24after receiving notice, appoint a successor to serve out that
25member's term. The State Superintendent may remove a member for

 

 

10000SB0001sam001- 150 -LRB100 06371 NHT 24204 a

1incompetence, malfeasance, neglect of duty, or other just
2cause.
3    Members of the Authority shall be selected primarily on the
4basis of their experience and education in financial
5management, with consideration given to persons knowledgeable
6in education finance. Two members of the Authority shall be
7residents of the school district that the Authority serves. A
8member of the Authority may not be a member of the district's
9school board or an employee of the district nor may a member
10have a direct financial interest in the district.
11    Authority members shall serve without compensation, but
12may be reimbursed by the State Board for travel and other
13necessary expenses incurred in the performance of their
14official duties. Unless paid from bonds issued under Section
151E-65 of this Code, the amount reimbursed members for their
16expenses shall be charged to the school district as part of any
17emergency financial assistance and incorporated as a part of
18the terms and conditions for repayment of the assistance or
19shall be deducted from the district's general State aid or
20evidence-based funding as provided in Section 1B-8 of this
21Code.
22    The Authority may elect such officers as it deems
23appropriate.
24    (b) The first meeting of the Authority shall be held at the
25call of the Chairperson. The Authority shall prescribe the
26times and places for its meetings and the manner in which

 

 

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1regular and special meetings may be called and shall comply
2with the Open Meetings Act.
3    Three members of the Authority shall constitute a quorum.
4When a vote is taken upon any measure before the Authority, a
5quorum being present, a majority of the votes of the members
6voting on the measure shall determine the outcome.
7(Source: P.A. 92-547, eff. 6-13-02.)
 
8    (105 ILCS 5/1F-20)
9(This Section scheduled to be repealed in accordance with 105
10ILCS 5/1F-165)
11    Sec. 1F-20. Members of Authority; meetings.
12    (a) Upon establishment of a School Finance Authority under
13Section 1F-15 of this Code, the State Superintendent shall
14within 15 days thereafter appoint 5 members to serve on a
15School Finance Authority for the district. Of the initial
16members, 2 shall be appointed to serve a term of 2 years and 3
17shall be appointed to serve a term of 3 years. Thereafter, each
18member shall serve for a term of 3 years and until his or her
19successor has been appointed. The State Superintendent shall
20designate one of the members of the Authority to serve as its
21Chairperson. In the event of vacancy or resignation, the State
22Superintendent shall, within 10 days after receiving notice,
23appoint a successor to serve out that member's term. The State
24Superintendent may remove a member for incompetence,
25malfeasance, neglect of duty, or other just cause.

 

 

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1    Members of the Authority shall be selected primarily on the
2basis of their experience and education in financial
3management, with consideration given to persons knowledgeable
4in education finance. Two members of the Authority shall be
5residents of the school district that the Authority serves. A
6member of the Authority may not be a member of the district's
7school board or an employee of the district nor may a member
8have a direct financial interest in the district.
9    Authority members shall be paid a stipend approved by the
10State Superintendent of not more than $100 per meeting and may
11be reimbursed by the State Board for travel and other necessary
12expenses incurred in the performance of their official duties.
13Unless paid from bonds issued under Section 1F-65 of this Code,
14the amount reimbursed members for their expenses shall be
15charged to the school district as part of any emergency
16financial assistance and incorporated as a part of the terms
17and conditions for repayment of the assistance or shall be
18deducted from the district's general State aid or
19evidence-based funding as provided in Section 1B-8 of this
20Code.
21    The Authority may elect such officers as it deems
22appropriate.
23    (b) The first meeting of the Authority shall be held at the
24call of the Chairperson. The Authority shall prescribe the
25times and places for its meetings and the manner in which
26regular and special meetings may be called and shall comply

 

 

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1with the Open Meetings Act.
2    Three members of the Authority shall constitute a quorum.
3When a vote is taken upon any measure before the Authority, a
4quorum being present, a majority of the votes of the members
5voting on the measure shall determine the outcome.
6(Source: P.A. 94-234, eff. 7-1-06.)
 
7    (105 ILCS 5/1F-62)
8(This Section scheduled to be repealed in accordance with 105
9ILCS 5/1F-165)
10    Sec. 1F-62. School District Emergency Financial Assistance
11Fund; grants and loans.
12    (a) Moneys in the School District Emergency Financial
13Assistance Fund established under Section 1B-8 of this Code may
14be allocated and expended by the State Board as grants to
15provide technical and consulting services to school districts
16to assess their financial condition and by the Illinois Finance
17Authority for emergency financial assistance loans to a School
18Finance Authority that petitions for emergency financial
19assistance. An emergency financial assistance loan to a School
20Finance Authority or borrowing from sources other than the
21State shall not be considered as part of the calculation of a
22district's debt for purposes of the limitation specified in
23Section 19-1 of this Code. From the amount allocated to each
24School Finance Authority, the State Board shall identify a sum
25sufficient to cover all approved costs of the School Finance

 

 

10000SB0001sam001- 154 -LRB100 06371 NHT 24204 a

1Authority. If the State Board and State Superintendent have not
2approved emergency financial assistance in conjunction with
3the appointment of a School Finance Authority, the Authority's
4approved costs shall be paid from deductions from the
5district's general State aid or evidence-based funding.
6    The School Finance Authority may prepare and file with the
7State Superintendent a proposal for emergency financial
8assistance for the school district and for its operations
9budget. No expenditures shall be authorized by the State
10Superintendent until he or she has approved the proposal of the
11School Finance Authority, either as submitted or in such lesser
12amount determined by the State Superintendent.
13    (b) The amount of an emergency financial assistance loan
14that may be allocated to a School Finance Authority under this
15Article, including moneys necessary for the operations of the
16School Finance Authority, and borrowing from sources other than
17the State shall not exceed, in the aggregate, $4,000 times the
18number of pupils enrolled in the district during the school
19year ending June 30 prior to the date of approval by the State
20Board of the petition for emergency financial assistance, as
21certified to the school board and the School Finance Authority
22by the State Superintendent. However, this limitation does not
23apply to borrowing by the district secured by amounts levied by
24the district prior to establishment of the School Finance
25Authority. An emergency financial assistance grant shall not
26exceed $1,000 times the number of such pupils. A district may

 

 

10000SB0001sam001- 155 -LRB100 06371 NHT 24204 a

1receive both a loan and a grant.
2    (c) The payment of a State emergency financial assistance
3grant or loan shall be subject to appropriation by the General
4Assembly. State emergency financial assistance allocated and
5paid to a School Finance Authority under this Article may be
6applied to any fund or funds from which the School Finance
7Authority is authorized to make expenditures by law.
8    (d) Any State emergency financial assistance proposed by
9the School Finance Authority and approved by the State
10Superintendent may be paid in its entirety during the initial
11year of the School Finance Authority's existence or spread in
12equal or declining amounts over a period of years not to exceed
13the period of the School Finance Authority's existence. The
14State Superintendent shall not approve any loan to the School
15Finance Authority unless the School Finance Authority has been
16unable to borrow sufficient funds to operate the district.
17    All loan payments made from the School District Emergency
18Financial Assistance Fund to a School Finance Authority shall
19be required to be repaid not later than the date the School
20Finance Authority ceases to exist, with simple interest over
21the term of the loan at a rate equal to 50% of the one-year
22Constant Maturity Treasury (CMT) yield as last published by the
23Board of Governors of the Federal Reserve System before the
24date on which the School Finance Authority's loan is approved
25by the State Board.
26    The School Finance Authority shall establish and the

 

 

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1Illinois Finance Authority shall approve the terms and
2conditions of the loan, including the schedule of repayments.
3The schedule shall provide for repayments commencing July 1 of
4each year or upon each fiscal year's receipt of moneys from a
5tax levy for emergency financial assistance. Repayment shall be
6incorporated into the annual budget of the district and may be
7made from any fund or funds of the district in which there are
8moneys available. Default on repayment is subject to the
9Illinois Grant Funds Recovery Act. When moneys are repaid as
10provided in this Section, they shall not be made available to
11the School Finance Authority for further use as emergency
12financial assistance under this Article at any time thereafter.
13All repayments required to be made by a School Finance
14Authority shall be received by the State Board and deposited in
15the School District Emergency Financial Assistance Fund.
16    In establishing the terms and conditions for the repayment
17obligation of the School Finance Authority, the School Finance
18Authority shall annually determine whether a separate local
19property tax levy is required to meet that obligation. The
20School Finance Authority shall provide for a separate tax levy
21for emergency financial assistance repayment purposes. This
22tax levy shall not be subject to referendum approval. The
23amount of the levy shall not exceed the amount necessary to
24meet the annual emergency financial repayment obligations of
25the district, including principal and interest, as established
26by the School Finance Authority.

 

 

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1(Source: P.A. 94-234, eff. 7-1-06.)
 
2    (105 ILCS 5/1H-20)
3    Sec. 1H-20. Members of Panel; meetings.
4    (a) Upon establishment of a Financial Oversight Panel under
5Section 1H-15 of this Code, the State Superintendent shall
6within 15 working days thereafter appoint 5 members to serve on
7a Financial Oversight Panel for the district. Members appointed
8to the Panel shall serve at the pleasure of the State
9Superintendent. The State Superintendent shall designate one
10of the members of the Panel to serve as its Chairperson. In the
11event of vacancy or resignation, the State Superintendent
12shall, within 10 days after receiving notice, appoint a
13successor to serve out that member's term.
14    (b) Members of the Panel shall be selected primarily on the
15basis of their experience and education in financial
16management, with consideration given to persons knowledgeable
17in education finance. Two members of the Panel shall be
18residents of the school district that the Panel serves. A
19member of the Panel may not be a member of the district's
20school board or an employee of the district nor may a member
21have a direct financial interest in the district.
22    (c) Panel members may be reimbursed by the State Board for
23travel and other necessary expenses incurred in the performance
24of their official duties. The amount reimbursed members for
25their expenses shall be charged to the school district as part

 

 

10000SB0001sam001- 158 -LRB100 06371 NHT 24204 a

1of any emergency financial assistance and incorporated as a
2part of the terms and conditions for repayment of the
3assistance or shall be deducted from the district's general
4State aid or evidence-based funding as provided in Section
51H-65 of this Code.
6    (d) With the exception of the chairperson, who shall be
7designated as provided in subsection (a) of this Section, the
8Panel may elect such officers as it deems appropriate.
9    (e) The first meeting of the Panel shall be held at the
10call of the Chairperson. The Panel shall prescribe the times
11and places for its meetings and the manner in which regular and
12special meetings may be called and shall comply with the Open
13Meetings Act. The Panel shall also comply with the Freedom of
14Information Act.
15    (f) Three members of the Panel shall constitute a quorum. A
16majority of members present is required to pass a measure.
17(Source: P.A. 97-429, eff. 8-16-11.)
 
18    (105 ILCS 5/1H-70)
19    Sec. 1H-70. Tax anticipation warrants, tax anticipation
20notes, revenue anticipation certificates or notes, general
21State aid or evidence-based funding anticipation certificates,
22and lines of credit. With the approval of the State
23Superintendent and provided that the district is unable to
24secure short-term financing after 3 attempts, a Panel shall
25have the same power as a district to do the following:

 

 

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1        (1) issue tax anticipation warrants under the
2    provisions of Section 17-16 of this Code against taxes
3    levied by either the school board or the Panel pursuant to
4    Section 1H-25 of this Code;
5        (2) issue tax anticipation notes under the provisions
6    of the Tax Anticipation Note Act against taxes levied by
7    either the school board or the Panel pursuant to Section
8    1H-25 of this Code;
9        (3) issue revenue anticipation certificates or notes
10    under the provisions of the Revenue Anticipation Act;
11        (4) issue general State aid or evidence-based funding
12    anticipation certificates under the provisions of Section
13    18-18 of this Code; and
14        (5) establish and utilize lines of credit under the
15    provisions of Section 17-17 of this Code.
16    Tax anticipation warrants, tax anticipation notes, revenue
17anticipation certificates or notes, general State aid or
18evidence-based funding anticipation certificates, and lines of
19credit are considered borrowing from sources other than the
20State and are subject to Section 1H-65 of this Code.
21(Source: P.A. 97-429, eff. 8-16-11.)
 
22    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
23    Sec. 2-3.33. Recomputation of claims. To recompute within
243 years from the final date for filing of a claim any claim for
25general State aid reimbursement to any school district and one

 

 

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1year from the final date for filing of a claim for
2evidence-based funding if the claim has been found to be
3incorrect and to adjust subsequent claims accordingly, and to
4recompute and adjust any such claims within 6 years from the
5final date for filing when there has been an adverse court or
6administrative agency decision on the merits affecting the tax
7revenues of the school district. However, no such adjustment
8shall be made regarding equalized assessed valuation unless the
9district's equalized assessed valuation is changed by greater
10than $250,000 or 2%. Any adjustments for claims recomputed for
11the 2016-2017 school year and prior school years shall be
12applied to the apportionment of evidence-based funding in
13Section 18-8.15 of this Code beginning in the 2017-2018 school
14year and thereafter. However, the recomputation of a claim for
15evidence-based funding for a school district shall not require
16the recomputation of claims for all districts, and the State
17Board of Education shall only make recomputations of
18evidence-based funding for those districts where an adjustment
19is required.
20    Except in the case of an adverse court or administrative
21agency decision, no recomputation of a State aid claim shall be
22made pursuant to this Section as a result of a reduction in the
23assessed valuation of a school district from the assessed
24valuation of the district reported to the State Board of
25Education by the Department of Revenue under Section 18-8.05 or
2618-8.15 of this Code unless the requirements of Section 16-15

 

 

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1of the Property Tax Code and Section 2-3.84 of this Code are
2complied with in all respects.
3    This paragraph applies to all requests for recomputation of
4a general State aid or evidence-based funding claim received
5after June 30, 2003. In recomputing a general State aid or
6evidence-based funding claim that was originally calculated
7using an extension limitation equalized assessed valuation
8under paragraph (3) of subsection (G) of Section 18-8.05 of
9this Code or Section 18-8.15 of this Code, a qualifying
10reduction in equalized assessed valuation shall be deducted
11from the extension limitation equalized assessed valuation
12that was used in calculating the original claim.
13    From the total amount of general State aid or
14evidence-based funding to be provided to districts,
15adjustments as a result of recomputation under this Section
16together with adjustments under Section 2-3.84 must not exceed
17$25 million, in the aggregate for all districts under both
18Sections combined, of the general State aid or evidence-based
19funding appropriation in any fiscal year; if necessary, amounts
20shall be prorated among districts. If it is necessary to
21prorate claims under this paragraph, then that portion of each
22prorated claim that is approved but not paid in the current
23fiscal year may be resubmitted as a valid claim in the
24following fiscal year.
25(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

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1    (105 ILCS 5/2-3.51.5)
2    Sec. 2-3.51.5. School Safety and Educational Improvement
3Block Grant Program. To improve the level of education and
4safety of students from kindergarten through grade 12 in school
5districts and State-recognized, non-public schools. The State
6Board of Education is authorized to fund a School Safety and
7Educational Improvement Block Grant Program.
8    (1) For school districts, the program shall provide funding
9for school safety, textbooks and software, electronic
10textbooks and the technological equipment necessary to gain
11access to and use electronic textbooks, teacher training and
12curriculum development, school improvements, school report
13cards under Section 10-17a, and criminal history records checks
14under Sections 10-21.9 and 34-18.5. For State-recognized,
15non-public schools, the program shall provide funding for
16secular textbooks and software, criminal history records
17checks, and health and safety mandates to the extent that the
18funds are expended for purely secular purposes. A school
19district or laboratory school as defined in Section 18-8, or
2018-8.05, or 18-8.15 is not required to file an application in
21order to receive the categorical funding to which it is
22entitled under this Section. Funds for the School Safety and
23Educational Improvement Block Grant Program shall be
24distributed to school districts and laboratory schools based on
25the prior year's best 3 months average daily attendance. Funds
26for the School Safety and Educational Improvement Block Grant

 

 

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1Program shall be distributed to State-recognized, non-public
2schools based on the average daily attendance figure for the
3previous school year provided to the State Board of Education.
4The State Board of Education shall develop an application that
5requires State-recognized, non-public schools to submit
6average daily attendance figures. A State-recognized,
7non-public school must submit the application and average daily
8attendance figure prior to receiving funds under this Section.
9The State Board of Education shall promulgate rules and
10regulations necessary for the implementation of this program.
11    (2) Distribution of moneys to school districts and
12State-recognized, non-public schools shall be made in 2
13semi-annual installments, one payment on or before October 30,
14and one payment prior to April 30, of each fiscal year.
15    (3) Grants under the School Safety and Educational
16Improvement Block Grant Program shall be awarded provided there
17is an appropriation for the program, and funding levels for
18each district shall be prorated according to the amount of the
19appropriation.
20    (4) The provisions of this Section are in the public
21interest, are for the public benefit, and serve secular public
22purposes.
23(Source: P.A. 98-972, eff. 8-15-14.)
 
24    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
25    Sec. 2-3.66. Truants' alternative and optional education

 

 

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1programs. To establish projects to offer modified
2instructional programs or other services designed to prevent
3students from dropping out of school, including programs
4pursuant to Section 2-3.41, and to serve as a part time or full
5time option in lieu of regular school attendance and to award
6grants to local school districts, educational service regions
7or community college districts from appropriated funds to
8assist districts in establishing such projects. The education
9agency may operate its own program or enter into a contract
10with another not-for-profit entity to implement the program.
11The projects shall allow dropouts, up to and including age 21,
12potential dropouts, including truants, uninvolved, unmotivated
13and disaffected students, as defined by State Board of
14Education rules and regulations, to enroll, as an alternative
15to regular school attendance, in an optional education program
16which may be established by school board policy and is in
17conformance with rules adopted by the State Board of Education.
18Truants' Alternative and Optional Education programs funded
19pursuant to this Section shall be planned by a student, the
20student's parents or legal guardians, unless the student is 18
21years or older, and school officials and shall culminate in an
22individualized optional education plan. Such plan shall focus
23on academic or vocational skills, or both, and may include, but
24not be limited to, evening school, summer school, community
25college courses, adult education, preparation courses for high
26school equivalency testing, vocational training, work

 

 

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1experience, programs to enhance self concept and parenting
2courses. School districts which are awarded grants pursuant to
3this Section shall be authorized to provide day care services
4to children of students who are eligible and desire to enroll
5in programs established and funded under this Section, but only
6if and to the extent that such day care is necessary to enable
7those eligible students to attend and participate in the
8programs and courses which are conducted pursuant to this
9Section. School districts and regional offices of education may
10claim general State aid under Section 18-8.05 or evidence-based
11funding under Section 18-8.15 for students enrolled in truants'
12alternative and optional education programs, provided that
13such students are receiving services that are supplemental to a
14program leading to a high school diploma and are otherwise
15eligible to be claimed for general State aid under Section
1618-8.05 or evidence-based funding under Section 18-8.15, as
17applicable.
18(Source: P.A. 98-718, eff. 1-1-15.)
 
19    (105 ILCS 5/2-3.66b)
20    Sec. 2-3.66b. IHOPE Program.
21    (a) There is established the Illinois Hope and Opportunity
22Pathways through Education (IHOPE) Program. The State Board of
23Education shall implement and administer the IHOPE Program. The
24goal of the IHOPE Program is to develop a comprehensive system
25in this State to re-enroll significant numbers of high school

 

 

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1dropouts in programs that will enable them to earn their high
2school diploma.
3    (b) The IHOPE Program shall award grants, subject to
4appropriation for this purpose, to educational service regions
5and a school district organized under Article 34 of this Code
6from appropriated funds to assist in establishing
7instructional programs and other services designed to
8re-enroll high school dropouts. From any funds appropriated for
9the IHOPE Program, the State Board of Education may use up to
105% for administrative costs, including the performance of a
11program evaluation and the hiring of staff to implement and
12administer the program.
13    The IHOPE Program shall provide incentive grant funds for
14regional offices of education and a school district organized
15under Article 34 of this Code to develop partnerships with
16school districts, public community colleges, and community
17groups to build comprehensive plans to re-enroll high school
18dropouts in their regions or districts.
19    Programs funded through the IHOPE Program shall allow high
20school dropouts, up to and including age 21 notwithstanding
21Section 26-2 of this Code, to re-enroll in an educational
22program in conformance with rules adopted by the State Board of
23Education. Programs may include without limitation
24comprehensive year-round programming, evening school, summer
25school, community college courses, adult education, vocational
26training, work experience, programs to enhance self-concept,

 

 

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1and parenting courses. Any student in the IHOPE Program who
2wishes to earn a high school diploma must meet the
3prerequisites to receiving a high school diploma specified in
4Section 27-22 of this Code and any other graduation
5requirements of the student's district of residence. Any
6student who successfully completes the requirements for his or
7her graduation shall receive a diploma identifying the student
8as graduating from his or her district of residence.
9    (c) In order to be eligible for funding under the IHOPE
10Program, an interested regional office of education or a school
11district organized under Article 34 of this Code shall develop
12an IHOPE Plan to be approved by the State Board of Education.
13The State Board of Education shall develop rules for the IHOPE
14Program that shall set forth the requirements for the
15development of the IHOPE Plan. Each Plan shall involve school
16districts, public community colleges, and key community
17programs that work with high school dropouts located in an
18educational service region or the City of Chicago before the
19Plan is sent to the State Board for approval. No funds may be
20distributed to a regional office of education or a school
21district organized under Article 34 of this Code until the
22State Board has approved the Plan.
23    (d) A regional office of education or a school district
24organized under Article 34 of this Code may operate its own
25program funded by the IHOPE Program or enter into a contract
26with other not-for-profit entities, including school

 

 

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1districts, public community colleges, and not-for-profit
2community-based organizations, to operate a program.
3    A regional office of education or a school district
4organized under Article 34 of this Code that receives an IHOPE
5grant from the State Board of Education may provide funds under
6a sub-grant, as specified in the IHOPE Plan, to other
7not-for-profit entities to provide services according to the
8IHOPE Plan that was developed. These other entities may include
9school districts, public community colleges, or not-for-profit
10community-based organizations or a cooperative partnership
11among these entities.
12    (e) In order to distribute funding based upon the need to
13ensure delivery of programs that will have the greatest impact,
14IHOPE Program funding must be distributed based upon the
15proportion of dropouts in the educational service region or
16school district, in the case of a school district organized
17under Article 34 of this Code, to the total number of dropouts
18in this State. This formula shall employ the dropout data
19provided by school districts to the State Board of Education.
20    A regional office of education or a school district
21organized under Article 34 of this Code may claim State aid
22under Section 18-8.05 or 18-8.15 of this Code for students
23enrolled in a program funded by the IHOPE Program, provided
24that the State Board of Education has approved the IHOPE Plan
25and that these students are receiving services that are meeting
26the requirements of Section 27-22 of this Code for receipt of a

 

 

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1high school diploma and are otherwise eligible to be claimed
2for general State aid under Section 18-8.05 of this Code or
3evidence-based funding under Section 18-8.15 of this Code,
4including provisions related to the minimum number of days of
5pupil attendance pursuant to Section 10-19 of this Code and the
6minimum number of daily hours of school work and any exceptions
7thereto as defined by the State Board of Education in rules.
8    (f) IHOPE categories of programming may include the
9following:
10        (1) Full-time programs that are comprehensive,
11    year-round programs.
12        (2) Part-time programs combining work and study
13    scheduled at various times that are flexible to the needs
14    of students.
15        (3) Online programs and courses in which students take
16    courses and complete on-site, supervised tests that
17    measure the student's mastery of a specific course needed
18    for graduation. Students may take courses online and earn
19    credit or students may prepare to take supervised tests for
20    specific courses for credit leading to receipt of a high
21    school diploma.
22        (4) Dual enrollment in which students attend high
23    school classes in combination with community college
24    classes or students attend community college classes while
25    simultaneously earning high school credit and eventually a
26    high school diploma.

 

 

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1    (g) In order to have successful comprehensive programs
2re-enrolling and graduating low-skilled high school dropouts,
3programs funded through the IHOPE Program shall include all of
4the following components:
5        (1) Small programs (70 to 100 students) at a separate
6    school site with a distinct identity. Programs may be
7    larger with specific need and justification, keeping in
8    mind that it is crucial to keep programs small to be
9    effective.
10        (2) Specific performance-based goals and outcomes and
11    measures of enrollment, attendance, skills, credits,
12    graduation, and the transition to college, training, and
13    employment.
14        (3) Strong, experienced leadership and teaching staff
15    who are provided with ongoing professional development.
16        (4) Voluntary enrollment.
17        (5) High standards for student learning, integrating
18    work experience, and education, including during the
19    school year and after school, and summer school programs
20    that link internships, work, and learning.
21        (6) Comprehensive programs providing extensive support
22    services.
23        (7) Small teams of students supported by full-time paid
24    mentors who work to retain and help those students
25    graduate.
26        (8) A comprehensive technology learning center with

 

 

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1    Internet access and broad-based curriculum focusing on
2    academic and career subject areas.
3        (9) Learning opportunities that incorporate action
4    into study.
5    (h) Programs funded through the IHOPE Program must report
6data to the State Board of Education as requested. This
7information shall include, but is not limited to, student
8enrollment figures, attendance information, course completion
9data, graduation information, and post-graduation information,
10as available.
11    (i) Rules must be developed by the State Board of Education
12to set forth the fund distribution process to regional offices
13of education and a school district organized under Article 34
14of this Code, the planning and the conditions upon which an
15IHOPE Plan would be approved by State Board, and other rules to
16develop the IHOPE Program.
17(Source: P.A. 96-106, eff. 7-30-09.)
 
18    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
19    Sec. 2-3.84. In calculating the amount of State aid to be
20apportioned to the various school districts in this State, the
21State Board of Education shall incorporate and deduct the total
22aggregate adjustments to assessments made by the State Property
23Tax Appeal Board or Cook County Board of Appeals, as reported
24pursuant to Section 16-15 of the Property Tax Code or Section
25129.1 of the Revenue Act of 1939 by the Department of Revenue,

 

 

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1from the equalized assessed valuation that is otherwise to be
2utilized in the initial calculation.
3    From the total amount of general State aid or
4evidence-based funding to be provided to districts,
5adjustments under this Section together with adjustments as a
6result of recomputation under Section 2-3.33 must not exceed
7$25 million, in the aggregate for all districts under both
8Sections combined, of the general State aid or evidence-based
9funding appropriation in any fiscal year; if necessary, amounts
10shall be prorated among districts. If it is necessary to
11prorate claims under this paragraph, then that portion of each
12prorated claim that is approved but not paid in the current
13fiscal year may be resubmitted as a valid claim in the
14following fiscal year.
15(Source: P.A. 93-845, eff. 7-30-04.)
 
16    (105 ILCS 5/2-3.109a)
17    Sec. 2-3.109a. Laboratory schools grant eligibility. A
18laboratory school as defined in Section 18-8 or 18-8.15 may
19apply for and be eligible to receive, subject to the same
20restrictions applicable to school districts, any grant
21administered by the State Board of Education that is available
22for school districts.
23(Source: P.A. 90-566, eff. 1-2-98.)
 
24    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)

 

 

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1    Sec. 3-14.21. Inspection of schools.
2    (a) The regional superintendent shall inspect and survey
3all public schools under his or her supervision and notify the
4board of education, or the trustees of schools in a district
5with trustees, in writing before July 30, whether or not the
6several schools in their district have been kept as required by
7law, using forms provided by the State Board of Education which
8are based on the Health/Life Safety Code for Public Schools
9adopted under Section 2-3.12. The regional superintendent
10shall report his or her findings to the State Board of
11Education on forms provided by the State Board of Education.
12    (b) If the regional superintendent determines that a school
13board has failed in a timely manner to correct urgent items
14identified in a previous life-safety report completed under
15Section 2-3.12 or as otherwise previously ordered by the
16regional superintendent, the regional superintendent shall
17order the school board to adopt and submit to the regional
18superintendent a plan for the immediate correction of the
19building violations. This plan shall be adopted following a
20public hearing that is conducted by the school board on the
21violations and the plan and that is preceded by at least 7
22days' prior notice of the hearing published in a newspaper of
23general circulation within the school district. If the regional
24superintendent determines in the next annual inspection that
25the plan has not been completed and that the violations have
26not been corrected, the regional superintendent shall submit a

 

 

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1report to the State Board of Education with a recommendation
2that the State Board withhold from payments of general State
3aid or evidence-based funding due to the district an amount
4necessary to correct the outstanding violations. The State
5Board, upon notice to the school board and to the regional
6superintendent, shall consider the report at a meeting of the
7State Board, and may order that a sufficient amount of general
8State aid or evidence-based funding be withheld from payments
9due to the district to correct the violations. This amount
10shall be paid to the regional superintendent who shall contract
11on behalf of the school board for the correction of the
12outstanding violations.
13    (c) The Office of the State Fire Marshal or a qualified
14fire official, as defined in Section 2-3.12 of this Code, to
15whom the State Fire Marshal has delegated his or her authority
16shall conduct an annual fire safety inspection of each school
17building in this State. The State Fire Marshal or the fire
18official shall coordinate its inspections with the regional
19superintendent. The inspection shall be based on the fire
20safety code authorized in Section 2-3.12 of this Code. Any
21violations shall be reported in writing to the regional
22superintendent and shall reference the specific code sections
23where a discrepancy has been identified within 15 days after
24the inspection has been conducted. The regional superintendent
25shall address those violations that are not corrected in a
26timely manner pursuant to subsection (b) of this Section. The

 

 

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1inspection must be at no cost to the school district.
2    (d) If a municipality or, in the case of an unincorporated
3area, a county or, if applicable, a fire protection district
4wishes to perform new construction inspections under the
5jurisdiction of a regional superintendent, then the entity must
6register this wish with the regional superintendent. These
7inspections must be based on the building code authorized in
8Section 2-3.12 of this Code. The inspections must be at no cost
9to the school district.
10(Source: P.A. 96-734, eff. 8-25-09.)
 
11    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
12    Sec. 7-14A. Annexation compensation. There shall be no
13accounting made after a mere change in boundaries when no new
14district is created, except that those districts whose
15enrollment increases by 90% or more as a result of annexing
16territory detached from another district pursuant to this
17Article are eligible for supplementary State aid payments in
18accordance with Section 11E-135 of this Code. Eligible annexing
19districts shall apply to the State Board of Education for
20supplementary State aid payments by submitting enrollment
21figures for the year immediately preceding and the year
22immediately following the effective date of the boundary change
23for both the district gaining territory and the district losing
24territory. Copies of any intergovernmental agreements between
25the district gaining territory and the district losing

 

 

10000SB0001sam001- 176 -LRB100 06371 NHT 24204 a

1territory detailing any transfer of fund balances and staff
2must also be submitted. In all instances of changes in
3boundaries, the district losing territory shall not count the
4average daily attendance of pupils living in the territory
5during the year preceding the effective date of the boundary
6change in its claim for reimbursement under Section 18-8.05 or
718-8.15 of this Code for the school year following the
8effective date of the change in boundaries and the district
9receiving the territory shall count the average daily
10attendance of pupils living in the territory during the year
11preceding the effective date of the boundary change in its
12claim for reimbursement under Section 18-8.05 or 18-8.15 of
13this Code for the school year following the effective date of
14the change in boundaries. The changes to this Section made by
15this amendatory Act of the 95th General Assembly are intended
16to be retroactive and applicable to any annexation taking
17effect on or after July 1, 2004.
18(Source: P.A. 99-657, eff. 7-28-16.)
 
19    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
20    Sec. 10-19. Length of school term - experimental programs.
21Each school board shall annually prepare a calendar for the
22school term, specifying the opening and closing dates and
23providing a minimum term of at least 185 days to insure 176
24days of actual pupil attendance, computable under Section
2518-8.05 or 18-8.15, except that for the 1980-1981 school year

 

 

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1only 175 days of actual pupil attendance shall be required
2because of the closing of schools pursuant to Section 24-2 on
3January 29, 1981 upon the appointment by the President of that
4day as a day of thanksgiving for the freedom of the Americans
5who had been held hostage in Iran. Any days allowed by law for
6teachers' institutes but not used as such or used as parental
7institutes as provided in Section 10-22.18d shall increase the
8minimum term by the school days not so used. Except as provided
9in Section 10-19.1, the board may not extend the school term
10beyond such closing date unless that extension of term is
11necessary to provide the minimum number of computable days. In
12case of such necessary extension school employees shall be paid
13for such additional time on the basis of their regular
14contracts. A school board may specify a closing date earlier
15than that set on the annual calendar when the schools of the
16district have provided the minimum number of computable days
17under this Section. Nothing in this Section prevents the board
18from employing superintendents of schools, principals and
19other nonteaching personnel for a period of 12 months, or in
20the case of superintendents for a period in accordance with
21Section 10-23.8, or prevents the board from employing other
22personnel before or after the regular school term with payment
23of salary proportionate to that received for comparable work
24during the school term.
25    A school board may make such changes in its calendar for
26the school term as may be required by any changes in the legal

 

 

10000SB0001sam001- 178 -LRB100 06371 NHT 24204 a

1school holidays prescribed in Section 24-2. A school board may
2make changes in its calendar for the school term as may be
3necessary to reflect the utilization of teachers' institute
4days as parental institute days as provided in Section
510-22.18d.
6    The calendar for the school term and any changes must be
7submitted to and approved by the regional superintendent of
8schools before the calendar or changes may take effect.
9    With the prior approval of the State Board of Education and
10subject to review by the State Board of Education every 3
11years, any school board may, by resolution of its board and in
12agreement with affected exclusive collective bargaining
13agents, establish experimental educational programs, including
14but not limited to programs for e-learning days as authorized
15under Section 10-20.56 of this Code, self-directed learning, or
16outside of formal class periods, which programs when so
17approved shall be considered to comply with the requirements of
18this Section as respects numbers of days of actual pupil
19attendance and with the other requirements of this Act as
20respects courses of instruction.
21(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
22    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
23    Sec. 10-22.5a. Attendance by dependents of United States
24military personnel, foreign exchange students, and certain
25nonresident pupils.

 

 

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1    (a) To enter into written agreements with cultural exchange
2organizations, or with nationally recognized eleemosynary
3institutions that promote excellence in the arts, mathematics,
4or science. The written agreements may provide for tuition free
5attendance at the local district school by foreign exchange
6students, or by nonresident pupils of eleemosynary
7institutions. The local board of education, as part of the
8agreement, may require that the cultural exchange program or
9the eleemosynary institutions provide services to the district
10in exchange for the waiver of nonresident tuition.
11    To enter into written agreements with adjacent school
12districts to provide for tuition free attendance by a student
13of the adjacent district when requested for the student's
14health and safety by the student or parent and both districts
15determine that the student's health or safety will be served by
16such attendance. Districts shall not be required to enter into
17such agreements nor be required to alter existing
18transportation services due to the attendance of such
19non-resident pupils.
20    (a-5) If, at the time of enrollment, a dependent of United
21States military personnel is housed in temporary housing
22located outside of a school district, but will be living within
23the district within 60 days after the time of initial
24enrollment, the dependent must be allowed to enroll, subject to
25the requirements of this subsection (a-5), and must not be
26charged tuition. Any United States military personnel

 

 

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1attempting to enroll a dependent under this subsection (a-5)
2shall provide proof that the dependent will be living within
3the district within 60 days after the time of initial
4enrollment. Proof of residency may include, but is not limited
5to, postmarked mail addressed to the military personnel and
6sent to an address located within the district, a lease
7agreement for occupancy of a residence located within the
8district, or proof of ownership of a residence located within
9the district.
10    (b) Nonresident pupils and foreign exchange students
11attending school on a tuition free basis under such agreements
12and nonresident dependents of United States military personnel
13attending school on a tuition free basis may be counted for the
14purposes of determining the apportionment of State aid provided
15under Section 18-8.05 or 18-8.15 of this Code. No organization
16or institution participating in agreements authorized under
17this Section may exclude any individual for participation in
18its program on account of the person's race, color, sex,
19religion or nationality.
20(Source: P.A. 98-739, eff. 7-16-14.)
 
21    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
22    Sec. 10-22.20. Classes for adults and youths whose
23schooling has been interrupted; conditions for State
24reimbursement; use of child care facilities.
25    (a) To establish special classes for the instruction (1) of

 

 

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1persons of age 21 years or over and (2) of persons less than
2age 21 and not otherwise in attendance in public school, for
3the purpose of providing adults in the community and youths
4whose schooling has been interrupted with such additional basic
5education, vocational skill training, and other instruction as
6may be necessary to increase their qualifications for
7employment or other means of self-support and their ability to
8meet their responsibilities as citizens, including courses of
9instruction regularly accepted for graduation from elementary
10or high schools and for Americanization and high school
11equivalency testing review classes.
12    The board shall pay the necessary expenses of such classes
13out of school funds of the district, including costs of student
14transportation and such facilities or provision for child-care
15as may be necessary in the judgment of the board to permit
16maximum utilization of the courses by students with children,
17and other special needs of the students directly related to
18such instruction. The expenses thus incurred shall be subject
19to State reimbursement, as provided in this Section. The board
20may make a tuition charge for persons taking instruction who
21are not subject to State reimbursement, such tuition charge not
22to exceed the per capita cost of such classes.
23    The cost of such instruction, including the additional
24expenses herein authorized, incurred for recipients of
25financial aid under the Illinois Public Aid Code, or for
26persons for whom education and training aid has been authorized

 

 

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1under Section 9-8 of that Code, shall be assumed in its
2entirety from funds appropriated by the State to the Illinois
3Community College Board.
4    (b) The Illinois Community College Board shall establish
5the standards for the courses of instruction reimbursed under
6this Section. The Illinois Community College Board shall
7supervise the administration of the programs. The Illinois
8Community College Board shall determine the cost of instruction
9in accordance with standards established by the Illinois
10Community College Board, including therein other incidental
11costs as herein authorized, which shall serve as the basis of
12State reimbursement in accordance with the provisions of this
13Section. In the approval of programs and the determination of
14the cost of instruction, the Illinois Community College Board
15shall provide for the maximum utilization of federal funds for
16such programs. The Illinois Community College Board shall also
17provide for:
18        (1) the development of an index of need for program
19    planning and for area funding allocations, as defined by
20    the Illinois Community College Board;
21        (2) the method for calculating hours of instruction, as
22    defined by the Illinois Community College Board, claimable
23    for reimbursement and a method to phase in the calculation
24    and for adjusting the calculations in cases where the
25    services of a program are interrupted due to circumstances
26    beyond the control of the program provider;

 

 

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1        (3) a plan for the reallocation of funds to increase
2    the amount allocated for grants based upon program
3    performance as set forth in subsection (d) below; and
4        (4) the development of standards for determining
5    grants based upon performance as set forth in subsection
6    (d) below and a plan for the phased-in implementation of
7    those standards.
8    For instruction provided by school districts and community
9college districts beginning July 1, 1996 and thereafter,
10reimbursement provided by the Illinois Community College Board
11for classes authorized by this Section shall be provided from
12funds appropriated for the reimbursement criteria set forth in
13subsection (c) below.
14    (c) Upon the annual approval of the Illinois Community
15College Board, reimbursement shall be first provided for
16transportation, child care services, and other special needs of
17the students directly related to instruction and then from the
18funds remaining an amount equal to the product of the total
19credit hours or units of instruction approved by the Illinois
20Community College Board, multiplied by the following:
21        (1) For adult basic education, the maximum
22    reimbursement per credit hour or per unit of instruction
23    shall be equal to (i) through fiscal year 2017, the general
24    state aid per pupil foundation level established in
25    subsection (B) of Section 18-8.05, divided by 60, or (ii)
26    in fiscal year 2018 and thereafter, the prior fiscal year

 

 

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1    reimbursement level multiplied by the Consumer Price Index
2    for All Urban Consumers for all items published by the
3    United States Department of Labor;
4        (2) The maximum reimbursement per credit hour or per
5    unit of instruction in subparagraph (1) above shall be
6    weighted for students enrolled in classes defined as
7    vocational skills and approved by the Illinois Community
8    College Board by 1.25;
9        (3) The maximum reimbursement per credit hour or per
10    unit of instruction in subparagraph (1) above shall be
11    multiplied by .90 for students enrolled in classes defined
12    as adult secondary education programs and approved by the
13    Illinois Community College Board;
14        (4) (Blank); and
15        (5) Funding for program years after 1999-2000 shall be
16    determined by the Illinois Community College Board.
17    (d) Upon its annual approval, the Illinois Community
18College Board shall provide grants to eligible programs for
19supplemental activities to improve or expand services under the
20Adult Education Act. Eligible programs shall be determined
21based upon performance outcomes of students in the programs as
22set by the Illinois Community College Board.
23    (e) Reimbursement under this Section shall not exceed the
24actual costs of the approved program.
25    If the amount appropriated to the Illinois Community
26College Board for reimbursement under this Section is less than

 

 

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1the amount required under this Act, the apportionment shall be
2proportionately reduced.
3    School districts and community college districts may
4assess students up to $3.00 per credit hour, for classes other
5than Adult Basic Education level programs, if needed to meet
6program costs.
7    (f) An education plan shall be established for each adult
8or youth whose schooling has been interrupted and who is
9participating in the instructional programs provided under
10this Section.
11    Each school board and community college shall keep an
12accurate and detailed account of the students assigned to and
13receiving instruction under this Section who are subject to
14State reimbursement and shall submit reports of services
15provided commencing with fiscal year 1997 as required by the
16Illinois Community College Board.
17    For classes authorized under this Section, a credit hour or
18unit of instruction is equal to 15 hours of direct instruction
19for students enrolled in approved adult education programs at
20midterm and making satisfactory progress, in accordance with
21standards established by the Illinois Community College Board.
22    (g) Upon proof submitted to the Illinois Department of
23Human Services of the payment of all claims submitted under
24this Section, that Department shall apply for federal funds
25made available therefor and any federal funds so received shall
26be paid into the General Revenue Fund in the State Treasury.

 

 

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1    School districts or community colleges providing classes
2under this Section shall submit applications to the Illinois
3Community College Board for preapproval in accordance with the
4standards established by the Illinois Community College Board.
5Payments shall be made by the Illinois Community College Board
6based upon approved programs. Interim expenditure reports may
7be required by the Illinois Community College Board. Final
8claims for the school year shall be submitted to the regional
9superintendents for transmittal to the Illinois Community
10College Board. Final adjusted payments shall be made by
11September 30.
12    If a school district or community college district fails to
13provide, or is providing unsatisfactory or insufficient
14classes under this Section, the Illinois Community College
15Board may enter into agreements with public or private
16educational or other agencies other than the public schools for
17the establishment of such classes.
18    (h) If a school district or community college district
19establishes child-care facilities for the children of
20participants in classes established under this Section, it may
21extend the use of these facilities to students who have
22obtained employment and to other persons in the community whose
23children require care and supervision while the parent or other
24person in charge of the children is employed or otherwise
25absent from the home during all or part of the day. It may make
26the facilities available before and after as well as during

 

 

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1regular school hours to school age and preschool age children
2who may benefit thereby, including children who require care
3and supervision pending the return of their parent or other
4person in charge of their care from employment or other
5activity requiring absence from the home.
6    The Illinois Community College Board shall pay to the board
7the cost of care in the facilities for any child who is a
8recipient of financial aid under the Illinois Public Aid Code.
9    The board may charge for care of children for whom it
10cannot make claim under the provisions of this Section. The
11charge shall not exceed per capita cost, and to the extent
12feasible, shall be fixed at a level which will permit
13utilization by employed parents of low or moderate income. It
14may also permit any other State or local governmental agency or
15private agency providing care for children to purchase care.
16    After July 1, 1970 when the provisions of Section 10-20.20
17become operative in the district, children in a child-care
18facility shall be transferred to the kindergarten established
19under that Section for such portion of the day as may be
20required for the kindergarten program, and only the prorated
21costs of care and training provided in the Center for the
22remaining period shall be charged to the Illinois Department of
23Human Services or other persons or agencies paying for such
24care.
25    (i) The provisions of this Section shall also apply to
26school districts having a population exceeding 500,000.

 

 

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1    (j) In addition to claiming reimbursement under this
2Section, a school district may claim general State aid under
3Section 18-8.05 or evidence-based funding under Section
418-8.15 for any student under age 21 who is enrolled in courses
5accepted for graduation from elementary or high school and who
6otherwise meets the requirements of Section 18-8.05 or 18-8.15,
7as applicable.
8(Source: P.A. 98-718, eff. 1-1-15.)
 
9    (105 ILCS 5/10-29)
10    Sec. 10-29. Remote educational programs.
11    (a) For purposes of this Section, "remote educational
12program" means an educational program delivered to students in
13the home or other location outside of a school building that
14meets all of the following criteria:
15        (1) A student may participate in the program only after
16    the school district, pursuant to adopted school board
17    policy, and a person authorized to enroll the student under
18    Section 10-20.12b of this Code determine that a remote
19    educational program will best serve the student's
20    individual learning needs. The adopted school board policy
21    shall include, but not be limited to, all of the following:
22            (A) Criteria for determining that a remote
23        educational program will best serve a student's
24        individual learning needs. The criteria must include
25        consideration of, at a minimum, a student's prior

 

 

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1        attendance, disciplinary record, and academic history.
2            (B) Any limitations on the number of students or
3        grade levels that may participate in a remote
4        educational program.
5            (C) A description of the process that the school
6        district will use to approve participation in the
7        remote educational program. The process must include
8        without limitation a requirement that, for any student
9        who qualifies to receive services pursuant to the
10        federal Individuals with Disabilities Education
11        Improvement Act of 2004, the student's participation
12        in a remote educational program receive prior approval
13        from the student's individualized education program
14        team.
15            (D) A description of the process the school
16        district will use to develop and approve a written
17        remote educational plan that meets the requirements of
18        subdivision (5) of this subsection (a).
19            (E) A description of the system the school district
20        will establish to calculate the number of clock hours a
21        student is participating in instruction in accordance
22        with the remote educational program.
23            (F) A description of the process for renewing a
24        remote educational program at the expiration of its
25        term.
26            (G) Such other terms and provisions as the school

 

 

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1        district deems necessary to provide for the
2        establishment and delivery of a remote educational
3        program.
4        (2) The school district has determined that the remote
5    educational program's curriculum is aligned to State
6    learning standards and that the program offers instruction
7    and educational experiences consistent with those given to
8    students at the same grade level in the district.
9        (3) The remote educational program is delivered by
10    instructors that meet the following qualifications:
11            (A) they are certificated under Article 21 of this
12        Code;
13            (B) they meet applicable highly qualified criteria
14        under the federal No Child Left Behind Act of 2001; and
15            (C) they have responsibility for all of the
16        following elements of the program: planning
17        instruction, diagnosing learning needs, prescribing
18        content delivery through class activities, assessing
19        learning, reporting outcomes to administrators and
20        parents and guardians, and evaluating the effects of
21        instruction.
22        (4) During the period of time from and including the
23    opening date to the closing date of the regular school term
24    of the school district established pursuant to Section
25    10-19 of this Code, participation in a remote educational
26    program may be claimed for general State aid purposes under

 

 

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1    Section 18-8.05 of this Code or evidence-based funding
2    purposes under Section 18-8.15 of this Code on any calendar
3    day, notwithstanding whether the day is a day of pupil
4    attendance or institute day on the school district's
5    calendar or any other provision of law restricting
6    instruction on that day. If the district holds year-round
7    classes in some buildings, the district shall classify each
8    student's participation in a remote educational program as
9    either on a year-round or a non-year-round schedule for
10    purposes of claiming general State aid or evidence-based
11    funding. Outside of the regular school term of the
12    district, the remote educational program may be offered as
13    part of any summer school program authorized by this Code.
14        (5) Each student participating in a remote educational
15    program must have a written remote educational plan that
16    has been approved by the school district and a person
17    authorized to enroll the student under Section 10-20.12b of
18    this Code. The school district and a person authorized to
19    enroll the student under Section 10-20.12b of this Code
20    must approve any amendment to a remote educational plan.
21    The remote educational plan must include, but is not
22    limited to, all of the following:
23            (A) Specific achievement goals for the student
24        aligned to State learning standards.
25            (B) A description of all assessments that will be
26        used to measure student progress, which description

 

 

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1        shall indicate the assessments that will be
2        administered at an attendance center within the school
3        district.
4            (C) A description of the progress reports that will
5        be provided to the school district and the person or
6        persons authorized to enroll the student under Section
7        10-20.12b of this Code.
8            (D) Expectations, processes, and schedules for
9        interaction between a teacher and student.
10            (E) A description of the specific responsibilities
11        of the student's family and the school district with
12        respect to equipment, materials, phone and Internet
13        service, and any other requirements applicable to the
14        home or other location outside of a school building
15        necessary for the delivery of the remote educational
16        program.
17            (F) If applicable, a description of how the remote
18        educational program will be delivered in a manner
19        consistent with the student's individualized education
20        program required by Section 614(d) of the federal
21        Individuals with Disabilities Education Improvement
22        Act of 2004 or plan to ensure compliance with Section
23        504 of the federal Rehabilitation Act of 1973.
24            (G) A description of the procedures and
25        opportunities for participation in academic and
26        extra-curricular activities and programs within the

 

 

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1        school district.
2            (H) The identification of a parent, guardian, or
3        other responsible adult who will provide direct
4        supervision of the program. The plan must include an
5        acknowledgment by the parent, guardian, or other
6        responsible adult that he or she may engage only in
7        non-teaching duties not requiring instructional
8        judgment or the evaluation of a student. The plan shall
9        designate the parent, guardian, or other responsible
10        adult as non-teaching personnel or volunteer personnel
11        under subsection (a) of Section 10-22.34 of this Code.
12            (I) The identification of a school district
13        administrator who will oversee the remote educational
14        program on behalf of the school district and who may be
15        contacted by the student's parents with respect to any
16        issues or concerns with the program.
17            (J) The term of the student's participation in the
18        remote educational program, which may not extend for
19        longer than 12 months, unless the term is renewed by
20        the district in accordance with subdivision (7) of this
21        subsection (a).
22            (K) A description of the specific location or
23        locations in which the program will be delivered. If
24        the remote educational program is to be delivered to a
25        student in any location other than the student's home,
26        the plan must include a written determination by the

 

 

10000SB0001sam001- 194 -LRB100 06371 NHT 24204 a

1        school district that the location will provide a
2        learning environment appropriate for the delivery of
3        the program. The location or locations in which the
4        program will be delivered shall be deemed a long
5        distance teaching reception area under subsection (a)
6        of Section 10-22.34 of this Code.
7            (L) Certification by the school district that the
8        plan meets all other requirements of this Section.
9        (6) Students participating in a remote educational
10    program must be enrolled in a school district attendance
11    center pursuant to the school district's enrollment policy
12    or policies. A student participating in a remote
13    educational program must be tested as part of all
14    assessments administered by the school district pursuant
15    to Section 2-3.64a-5 of this Code at the attendance center
16    in which the student is enrolled and in accordance with the
17    attendance center's assessment policies and schedule. The
18    student must be included within all accountability
19    determinations for the school district and attendance
20    center under State and federal law.
21        (7) The term of a student's participation in a remote
22    educational program may not extend for longer than 12
23    months, unless the term is renewed by the school district.
24    The district may only renew a student's participation in a
25    remote educational program following an evaluation of the
26    student's progress in the program, a determination that the

 

 

10000SB0001sam001- 195 -LRB100 06371 NHT 24204 a

1    student's continuation in the program will best serve the
2    student's individual learning needs, and an amendment to
3    the student's written remote educational plan addressing
4    any changes for the upcoming term of the program.
5    For purposes of this Section, a remote educational program
6does not include instruction delivered to students through an
7e-learning program approved under Section 10-20.56 of this
8Code.
9    (b) A school district may, by resolution of its school
10board, establish a remote educational program.
11    (c) Clock hours of instruction by students in a remote
12educational program meeting the requirements of this Section
13may be claimed by the school district and shall be counted as
14school work for general State aid purposes in accordance with
15and subject to the limitations of Section 18-8.05 of this Code
16or evidence-based funding purposes in accordance with and
17subject to the limitations of Section 18-8.15 of this Code.
18    (d) The impact of remote educational programs on wages,
19hours, and terms and conditions of employment of educational
20employees within the school district shall be subject to local
21collective bargaining agreements.
22    (e) The use of a home or other location outside of a school
23building for a remote educational program shall not cause the
24home or other location to be deemed a public school facility.
25    (f) A remote educational program may be used, but is not
26required, for instruction delivered to a student in the home or

 

 

10000SB0001sam001- 196 -LRB100 06371 NHT 24204 a

1other location outside of a school building that is not claimed
2for general State aid purposes under Section 18-8.05 of this
3Code or evidence-based funding purposes under Section 18-8.15
4of this Code.
5    (g) School districts that, pursuant to this Section, adopt
6a policy for a remote educational program must submit to the
7State Board of Education a copy of the policy and any
8amendments thereto, as well as data on student participation in
9a format specified by the State Board of Education. The State
10Board of Education may perform or contract with an outside
11entity to perform an evaluation of remote educational programs
12in this State.
13    (h) The State Board of Education may adopt any rules
14necessary to ensure compliance by remote educational programs
15with the requirements of this Section and other applicable
16legal requirements.
17(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
1899-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
19    (105 ILCS 5/11E-135)
20    Sec. 11E-135. Incentives. For districts reorganizing under
21this Article and for a district or districts that annex all of
22the territory of one or more entire other school districts in
23accordance with Article 7 of this Code, the following payments
24shall be made from appropriations made for these purposes:
25    (a)(1) For a combined school district, as defined in

 

 

10000SB0001sam001- 197 -LRB100 06371 NHT 24204 a

1Section 11E-20 of this Code, or for a unit district, as defined
2in Section 11E-25 of this Code, for its first year of
3existence, the general State aid and supplemental general State
4aid calculated under Section 18-8.05 of this Code or the
5evidence-based funding calculated under Section 18-8.15 of
6this Code, as applicable, shall be computed for the new
7district and for the previously existing districts for which
8property is totally included within the new district. If the
9computation on the basis of the previously existing districts
10is greater, a supplementary payment equal to the difference
11shall be made for the first 4 years of existence of the new
12district.
13    (2) For a school district that annexes all of the territory
14of one or more entire other school districts as defined in
15Article 7 of this Code, for the first year during which the
16change of boundaries attributable to the annexation becomes
17effective for all purposes, as determined under Section 7-9 of
18this Code, the general State aid and supplemental general State
19aid calculated under Section 18-8.05 of this Code or the
20evidence-based funding calculated under Section 18-8.15 of
21this Code, as applicable, shall be computed for the annexing
22district as constituted after the annexation and for the
23annexing and each annexed district as constituted prior to the
24annexation; and if the computation on the basis of the annexing
25and annexed districts as constituted prior to the annexation is
26greater, then a supplementary payment equal to the difference

 

 

10000SB0001sam001- 198 -LRB100 06371 NHT 24204 a

1shall be made for the first 4 years of existence of the
2annexing school district as constituted upon the annexation.
3    (3) For 2 or more school districts that annex all of the
4territory of one or more entire other school districts, as
5defined in Article 7 of this Code, for the first year during
6which the change of boundaries attributable to the annexation
7becomes effective for all purposes, as determined under Section
87-9 of this Code, the general State aid and supplemental
9general State aid calculated under Section 18-8.05 of this Code
10or the evidence-based funding calculated under Section 18-8.15
11of this Code, as applicable, shall be computed for each
12annexing district as constituted after the annexation and for
13each annexing and annexed district as constituted prior to the
14annexation; and if the aggregate of the general State aid and
15supplemental general State aid or evidence-based funding, as
16applicable, as so computed for the annexing districts as
17constituted after the annexation is less than the aggregate of
18the general State aid and supplemental general State aid or
19evidence-based funding, as applicable, as so computed for the
20annexing and annexed districts, as constituted prior to the
21annexation, then a supplementary payment equal to the
22difference shall be made and allocated between or among the
23annexing districts, as constituted upon the annexation, for the
24first 4 years of their existence. The total difference payment
25shall be allocated between or among the annexing districts in
26the same ratio as the pupil enrollment from that portion of the

 

 

10000SB0001sam001- 199 -LRB100 06371 NHT 24204 a

1annexed district or districts that is annexed to each annexing
2district bears to the total pupil enrollment from the entire
3annexed district or districts, as such pupil enrollment is
4determined for the school year last ending prior to the date
5when the change of boundaries attributable to the annexation
6becomes effective for all purposes. The amount of the total
7difference payment and the amount thereof to be allocated to
8the annexing districts shall be computed by the State Board of
9Education on the basis of pupil enrollment and other data that
10shall be certified to the State Board of Education, on forms
11that it shall provide for that purpose, by the regional
12superintendent of schools for each educational service region
13in which the annexing and annexed districts are located.
14    (4) For a school district conversion, as defined in Section
1511E-15 of this Code, or a multi-unit conversion, as defined in
16subsection (b) of Section 11E-30 of this Code, if in their
17first year of existence the newly created elementary districts
18and the newly created high school district, from a school
19district conversion, or the newly created elementary district
20or districts and newly created combined high school - unit
21district, from a multi-unit conversion, qualify for less
22general State aid under Section 18-8.05 of this Code or
23evidence-based funding under Section 18-8.15 of this Code than
24would have been payable under Section 18-8.05 or 18-8.15, as
25applicable, for that same year to the previously existing
26districts, then a supplementary payment equal to that

 

 

10000SB0001sam001- 200 -LRB100 06371 NHT 24204 a

1difference shall be made for the first 4 years of existence of
2the newly created districts. The aggregate amount of each
3supplementary payment shall be allocated among the newly
4created districts in the proportion that the deemed pupil
5enrollment in each district during its first year of existence
6bears to the actual aggregate pupil enrollment in all of the
7districts during their first year of existence. For purposes of
8each allocation:
9        (A) the deemed pupil enrollment of the newly created
10    high school district from a school district conversion
11    shall be an amount equal to its actual pupil enrollment for
12    its first year of existence multiplied by 1.25;
13        (B) the deemed pupil enrollment of each newly created
14    elementary district from a school district conversion
15    shall be an amount equal to its actual pupil enrollment for
16    its first year of existence reduced by an amount equal to
17    the product obtained when the amount by which the newly
18    created high school district's deemed pupil enrollment
19    exceeds its actual pupil enrollment for its first year of
20    existence is multiplied by a fraction, the numerator of
21    which is the actual pupil enrollment of the newly created
22    elementary district for its first year of existence and the
23    denominator of which is the actual aggregate pupil
24    enrollment of all of the newly created elementary districts
25    for their first year of existence;
26        (C) the deemed high school pupil enrollment of the

 

 

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1    newly created combined high school - unit district from a
2    multi-unit conversion shall be an amount equal to its
3    actual grades 9 through 12 pupil enrollment for its first
4    year of existence multiplied by 1.25; and
5        (D) the deemed elementary pupil enrollment of each
6    newly created district from a multi-unit conversion shall
7    be an amount equal to each district's actual grade K
8    through 8 pupil enrollment for its first year of existence,
9    reduced by an amount equal to the product obtained when the
10    amount by which the newly created combined high school -
11    unit district's deemed high school pupil enrollment
12    exceeds its actual grade 9 through 12 pupil enrollment for
13    its first year of existence is multiplied by a fraction,
14    the numerator of which is the actual grade K through 8
15    pupil enrollment of each newly created district for its
16    first year of existence and the denominator of which is the
17    actual aggregate grade K through 8 pupil enrollment of all
18    such newly created districts for their first year of
19    existence.
20     The aggregate amount of each supplementary payment under
21this subdivision (4) and the amount thereof to be allocated to
22the newly created districts shall be computed by the State
23Board of Education on the basis of pupil enrollment and other
24data, which shall be certified to the State Board of Education,
25on forms that it shall provide for that purpose, by the
26regional superintendent of schools for each educational

 

 

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1service region in which the newly created districts are
2located.
3    (5) For a partial elementary unit district, as defined in
4subsection (a) or (c) of Section 11E-30 of this Code, if, in
5the first year of existence, the newly created partial
6elementary unit district qualifies for less general State aid
7and supplemental general State aid under Section 18-8.05 of
8this Code or less evidence-based funding under Section 18-8.15
9of this Code, as applicable, than would have been payable under
10those Sections that Section for that same year to the
11previously existing districts that formed the partial
12elementary unit district, then a supplementary payment equal to
13that difference shall be made to the partial elementary unit
14district for the first 4 years of existence of that newly
15created district.
16    (6) For an elementary opt-in, as described in subsection
17(d) of Section 11E-30 of this Code, the general State aid or
18evidence-based funding difference shall be computed in
19accordance with paragraph (5) of this subsection (a) as if the
20elementary opt-in was included in an optional elementary unit
21district at the optional elementary unit district's original
22effective date. If the calculation in this paragraph (6) is
23less than that calculated in paragraph (5) of this subsection
24(a) at the optional elementary unit district's original
25effective date, then no adjustments may be made. If the
26calculation in this paragraph (6) is more than that calculated

 

 

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1in paragraph (5) of this subsection (a) at the optional
2elementary unit district's original effective date, then the
3excess must be paid as follows:
4        (A) If the effective date for the elementary opt-in is
5    one year after the effective date for the optional
6    elementary unit district, 100% of the calculated excess
7    shall be paid to the optional elementary unit district in
8    each of the first 4 years after the effective date of the
9    elementary opt-in.
10        (B) If the effective date for the elementary opt-in is
11    2 years after the effective date for the optional
12    elementary unit district, 75% of the calculated excess
13    shall be paid to the optional elementary unit district in
14    each of the first 4 years after the effective date of the
15    elementary opt-in.
16        (C) If the effective date for the elementary opt-in is
17    3 years after the effective date for the optional
18    elementary unit district, 50% of the calculated excess
19    shall be paid to the optional elementary unit district in
20    each of the first 4 years after the effective date of the
21    elementary opt-in.
22        (D) If the effective date for the elementary opt-in is
23    4 years after the effective date for the optional
24    elementary unit district, 25% of the calculated excess
25    shall be paid to the optional elementary unit district in
26    each of the first 4 years after the effective date of the

 

 

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1    elementary opt-in.
2        (E) If the effective date for the elementary opt-in is
3    5 years after the effective date for the optional
4    elementary unit district, the optional elementary unit
5    district is not eligible for any additional incentives due
6    to the elementary opt-in.
7    (6.5) For a school district that annexes territory detached
8from another school district whereby the enrollment of the
9annexing district increases by 90% or more as a result of the
10annexation, for the first year during which the change of
11boundaries attributable to the annexation becomes effective
12for all purposes as determined under Section 7-9 of this Code,
13the general State aid and supplemental general State aid or
14evidence-based funding, as applicable, calculated under this
15Section shall be computed for the district gaining territory
16and the district losing territory as constituted after the
17annexation and for the same districts as constituted prior to
18the annexation; and if the aggregate of the general State aid
19and supplemental general State aid or evidence-based funding,
20as applicable, as so computed for the district gaining
21territory and the district losing territory as constituted
22after the annexation is less than the aggregate of the general
23State aid and supplemental general State aid or evidence-based
24funding, as applicable, as so computed for the district gaining
25territory and the district losing territory as constituted
26prior to the annexation, then a supplementary payment shall be

 

 

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1made to the annexing district for the first 4 years of
2existence after the annexation, equal to the difference
3multiplied by the ratio of student enrollment in the territory
4detached to the total student enrollment in the district losing
5territory for the year prior to the effective date of the
6annexation. The amount of the total difference and the
7proportion paid to the annexing district shall be computed by
8the State Board of Education on the basis of pupil enrollment
9and other data that must be submitted to the State Board of
10Education in accordance with Section 7-14A of this Code. The
11changes to this Section made by Public Act 95-707 are intended
12to be retroactive and applicable to any annexation taking
13effect on or after July 1, 2004. For annexations that are
14eligible for payments under this paragraph (6.5) and that are
15effective on or after July 1, 2004, but before January 11, 2008
16(the effective date of Public Act 95-707), the first required
17yearly payment under this paragraph (6.5) shall be paid in the
18fiscal year of January 11, 2008 (the effective date of Public
19Act 95-707). Subsequent required yearly payments shall be paid
20in subsequent fiscal years until the payment obligation under
21this paragraph (6.5) is complete.
22    (7) Claims for financial assistance under this subsection
23(a) may not be recomputed except as expressly provided under
24Section 18-8.05 or 18-8.15 of this Code.
25    (8) Any supplementary payment made under this subsection
26(a) must be treated as separate from all other payments made

 

 

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1pursuant to Section 18-8.05 or 18-8.15 of this Code.
2    (b)(1) After the formation of a combined school district,
3as defined in Section 11E-20 of this Code, or a unit district,
4as defined in Section 11E-25 of this Code, a computation shall
5be made to determine the difference between the salaries
6effective in each of the previously existing districts on June
730, prior to the creation of the new district. For the first 4
8years after the formation of the new district, a supplementary
9State aid reimbursement shall be paid to the new district equal
10to the difference between the sum of the salaries earned by
11each of the certificated members of the new district, while
12employed in one of the previously existing districts during the
13year immediately preceding the formation of the new district,
14and the sum of the salaries those certificated members would
15have been paid during the year immediately prior to the
16formation of the new district if placed on the salary schedule
17of the previously existing district with the highest salary
18schedule.
19    (2) After the territory of one or more school districts is
20annexed by one or more other school districts as defined in
21Article 7 of this Code, a computation shall be made to
22determine the difference between the salaries effective in each
23annexed district and in the annexing district or districts as
24they were each constituted on June 30 preceding the date when
25the change of boundaries attributable to the annexation became
26effective for all purposes, as determined under Section 7-9 of

 

 

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1this Code. For the first 4 years after the annexation, a
2supplementary State aid reimbursement shall be paid to each
3annexing district as constituted after the annexation equal to
4the difference between the sum of the salaries earned by each
5of the certificated members of the annexing district as
6constituted after the annexation, while employed in an annexed
7or annexing district during the year immediately preceding the
8annexation, and the sum of the salaries those certificated
9members would have been paid during the immediately preceding
10year if placed on the salary schedule of whichever of the
11annexing or annexed districts had the highest salary schedule
12during the immediately preceding year.
13    (3) For each new high school district formed under a school
14district conversion, as defined in Section 11E-15 of this Code,
15the State shall make a supplementary payment for 4 years equal
16to the difference between the sum of the salaries earned by
17each certified member of the new high school district, while
18employed in one of the previously existing districts, and the
19sum of the salaries those certified members would have been
20paid if placed on the salary schedule of the previously
21existing district with the highest salary schedule.
22    (4) For each newly created partial elementary unit
23district, the State shall make a supplementary payment for 4
24years equal to the difference between the sum of the salaries
25earned by each certified member of the newly created partial
26elementary unit district, while employed in one of the

 

 

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1previously existing districts that formed the partial
2elementary unit district, and the sum of the salaries those
3certified members would have been paid if placed on the salary
4schedule of the previously existing district with the highest
5salary schedule. The salary schedules used in the calculation
6shall be those in effect in the previously existing districts
7for the school year prior to the creation of the new partial
8elementary unit district.
9    (5) For an elementary district opt-in, as described in
10subsection (d) of Section 11E-30 of this Code, the salary
11difference incentive shall be computed in accordance with
12paragraph (4) of this subsection (b) as if the opted-in
13elementary district was included in the optional elementary
14unit district at the optional elementary unit district's
15original effective date. If the calculation in this paragraph
16(5) is less than that calculated in paragraph (4) of this
17subsection (b) at the optional elementary unit district's
18original effective date, then no adjustments may be made. If
19the calculation in this paragraph (5) is more than that
20calculated in paragraph (4) of this subsection (b) at the
21optional elementary unit district's original effective date,
22then the excess must be paid as follows:
23        (A) If the effective date for the elementary opt-in is
24    one year after the effective date for the optional
25    elementary unit district, 100% of the calculated excess
26    shall be paid to the optional elementary unit district in

 

 

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1    each of the first 4 years after the effective date of the
2    elementary opt-in.
3        (B) If the effective date for the elementary opt-in is
4    2 years after the effective date for the optional
5    elementary unit district, 75% of the calculated excess
6    shall be paid to the optional elementary unit district in
7    each of the first 4 years after the effective date of the
8    elementary opt-in.
9        (C) If the effective date for the elementary opt-in is
10    3 years after the effective date for the optional
11    elementary unit district, 50% of the calculated excess
12    shall be paid to the optional elementary unit district in
13    each of the first 4 years after the effective date of the
14    elementary opt-in.
15        (D) If the effective date for the elementary opt-in is
16    4 years after the effective date for the partial elementary
17    unit district, 25% of the calculated excess shall be paid
18    to the optional elementary unit district in each of the
19    first 4 years after the effective date of the elementary
20    opt-in.
21        (E) If the effective date for the elementary opt-in is
22    5 years after the effective date for the optional
23    elementary unit district, the optional elementary unit
24    district is not eligible for any additional incentives due
25    to the elementary opt-in.
26    (5.5) After the formation of a cooperative high school by 2

 

 

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1or more school districts under Section 10-22.22c of this Code,
2a computation shall be made to determine the difference between
3the salaries effective in each of the previously existing high
4schools on June 30 prior to the formation of the cooperative
5high school. For the first 4 years after the formation of the
6cooperative high school, a supplementary State aid
7reimbursement shall be paid to the cooperative high school
8equal to the difference between the sum of the salaries earned
9by each of the certificated members of the cooperative high
10school while employed in one of the previously existing high
11schools during the year immediately preceding the formation of
12the cooperative high school and the sum of the salaries those
13certificated members would have been paid during the year
14immediately prior to the formation of the cooperative high
15school if placed on the salary schedule of the previously
16existing high school with the highest salary schedule.
17    (5.10) After the annexation of territory detached from
18another school district whereby the enrollment of the annexing
19district increases by 90% or more as a result of the
20annexation, a computation shall be made to determine the
21difference between the salaries effective in the district
22gaining territory and the district losing territory as they
23each were constituted on June 30 preceding the date when the
24change of boundaries attributable to the annexation became
25effective for all purposes as determined under Section 7-9 of
26this Code. For the first 4 years after the annexation, a

 

 

10000SB0001sam001- 211 -LRB100 06371 NHT 24204 a

1supplementary State aid reimbursement shall be paid to the
2annexing district equal to the difference between the sum of
3the salaries earned by each of the certificated members of the
4annexing district as constituted after the annexation while
5employed in the district gaining territory or the district
6losing territory during the year immediately preceding the
7annexation and the sum of the salaries those certificated
8members would have been paid during such immediately preceding
9year if placed on the salary schedule of whichever of the
10district gaining territory or district losing territory had the
11highest salary schedule during the immediately preceding year.
12To be eligible for supplementary State aid reimbursement under
13this Section, the intergovernmental agreement to be submitted
14pursuant to Section 7-14A of this Code must show that staff
15members were transferred from the control of the district
16losing territory to the control of the district gaining
17territory in the annexation. The changes to this Section made
18by Public Act 95-707 are intended to be retroactive and
19applicable to any annexation taking effect on or after July 1,
202004. For annexations that are eligible for payments under this
21paragraph (5.10) and that are effective on or after July 1,
222004, but before January 11, 2008 (the effective date of Public
23Act 95-707), the first required yearly payment under this
24paragraph (5.10) shall be paid in the fiscal year of January
2511, 2008 (the effective date of Public Act 95-707). Subsequent
26required yearly payments shall be paid in subsequent fiscal

 

 

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1years until the payment obligation under this paragraph (5.10)
2is complete.
3    (5.15) After the deactivation of a school facility in
4accordance with Section 10-22.22b of this Code, a computation
5shall be made to determine the difference between the salaries
6effective in the sending school district and each receiving
7school district on June 30 prior to the deactivation of the
8school facility. For the lesser of the first 4 years after the
9deactivation of the school facility or the length of the
10deactivation agreement, including any renewals of the original
11deactivation agreement, a supplementary State aid
12reimbursement shall be paid to each receiving district equal to
13the difference between the sum of the salaries earned by each
14of the certificated members transferred to that receiving
15district as a result of the deactivation while employed in the
16sending district during the year immediately preceding the
17deactivation and the sum of the salaries those certificated
18members would have been paid during the year immediately
19preceding the deactivation if placed on the salary schedule of
20the sending or receiving district with the highest salary
21schedule.
22    (6) The supplementary State aid reimbursement under this
23subsection (b) shall be treated as separate from all other
24payments made pursuant to Section 18-8.05 of this Code. In the
25case of the formation of a new district or cooperative high
26school or a deactivation, reimbursement shall begin during the

 

 

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1first year of operation of the new district or cooperative high
2school or the first year of the deactivation, and in the case
3of an annexation of the territory of one or more school
4districts by one or more other school districts or the
5annexation of territory detached from a school district whereby
6the enrollment of the annexing district increases by 90% or
7more as a result of the annexation, reimbursement shall begin
8during the first year when the change in boundaries
9attributable to the annexation becomes effective for all
10purposes as determined pursuant to Section 7-9 of this Code,
11except that for an annexation of territory detached from a
12school district that is effective on or after July 1, 2004, but
13before January 11, 2008 (the effective date of Public Act
1495-707), whereby the enrollment of the annexing district
15increases by 90% or more as a result of the annexation,
16reimbursement shall begin during the fiscal year of January 11,
172008 (the effective date of Public Act 95-707). Each year that
18the new, annexing, or receiving district or cooperative high
19school, as the case may be, is entitled to receive
20reimbursement, the number of eligible certified members who are
21employed on October 1 in the district or cooperative high
22school shall be certified to the State Board of Education on
23prescribed forms by October 15 and payment shall be made on or
24before November 15 of that year.
25    (c)(1) For the first year after the formation of a combined
26school district, as defined in Section 11E-20 of this Code or a

 

 

10000SB0001sam001- 214 -LRB100 06371 NHT 24204 a

1unit district, as defined in Section 11E-25 of this Code, a
2computation shall be made totaling each previously existing
3district's audited fund balances in the educational fund,
4working cash fund, operations and maintenance fund, and
5transportation fund for the year ending June 30 prior to the
6referendum for the creation of the new district. The new
7district shall be paid supplementary State aid equal to the sum
8of the differences between the deficit of the previously
9existing district with the smallest deficit and the deficits of
10each of the other previously existing districts.
11    (2) For the first year after the annexation of all of the
12territory of one or more entire school districts by another
13school district, as defined in Article 7 of this Code,
14computations shall be made, for the year ending June 30 prior
15to the date that the change of boundaries attributable to the
16annexation is allowed by the affirmative decision issued by the
17regional board of school trustees under Section 7-6 of this
18Code, notwithstanding any effort to seek administrative review
19of the decision, totaling the annexing district's and totaling
20each annexed district's audited fund balances in their
21respective educational, working cash, operations and
22maintenance, and transportation funds. The annexing district
23as constituted after the annexation shall be paid supplementary
24State aid equal to the sum of the differences between the
25deficit of whichever of the annexing or annexed districts as
26constituted prior to the annexation had the smallest deficit

 

 

10000SB0001sam001- 215 -LRB100 06371 NHT 24204 a

1and the deficits of each of the other districts as constituted
2prior to the annexation.
3    (3) For the first year after the annexation of all of the
4territory of one or more entire school districts by 2 or more
5other school districts, as defined by Article 7 of this Code,
6computations shall be made, for the year ending June 30 prior
7to the date that the change of boundaries attributable to the
8annexation is allowed by the affirmative decision of the
9regional board of school trustees under Section 7-6 of this
10Code, notwithstanding any action for administrative review of
11the decision, totaling each annexing and annexed district's
12audited fund balances in their respective educational, working
13cash, operations and maintenance, and transportation funds.
14The annexing districts as constituted after the annexation
15shall be paid supplementary State aid, allocated as provided in
16this paragraph (3), in an aggregate amount equal to the sum of
17the differences between the deficit of whichever of the
18annexing or annexed districts as constituted prior to the
19annexation had the smallest deficit and the deficits of each of
20the other districts as constituted prior to the annexation. The
21aggregate amount of the supplementary State aid payable under
22this paragraph (3) shall be allocated between or among the
23annexing districts as follows:
24        (A) the regional superintendent of schools for each
25    educational service region in which an annexed district is